DeBerg Company has developed the following sales projections for its second and third quarters:

May................................$100,000

June.................................120,000

July...................................140,000

August..............................160,000

September........................150,000

October.............................130,000

Normal cash collection experience has been that 50% of sales are collected during the month of sale and 45% in the month following sale. The remaining 5% of sales is never collected. DeBerg’s budgeted cash collections for the third calendar quarter are

a. $360,000

b. $427,500

c. $414,000

d. $440,000

e. $450,000