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Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid

Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows:

Percent paid in the month of sale 35%
Percent paid in the month after the sale 54%
Percent paid in the second month after the sale 6%

Alpha provided information on sales as follows:

May $150,000
June $125,000
July $136,000
August (expected) $142,000

How much of May's sales are expected to be uncollectible?

a.$5,000

b.$7,500

c.$0

d.$2,500

e.$7,200

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