ABC Ltd is a retailer of ladies' fashion and has the following historical collection pattern for its credit sales:

• 65 percent collected in the month of sale
• 15 percent collected in the first-month after-sale
• 10 percent collected in the second-month after-sale
• 5 percent collected in the third-month after-sale
• 5 percent uncollectable.

The credit sales have been budgeted for the last seven months of the year, as shown below:

June

$225,000

July

240,000

August

250,000

September

260, 000

October

280, 000

November

300, 000

December

225 000

Calculate the estimated total cash receipts during December from credit sales.

a.

None of the answers given

b.

$290000

c.

$244,000

d.

$260,000