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Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 25% are collected in
Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 25% are collected in the month of sale; 55% are collected in the first month after sale; and 20% are collected in the second month after sale. If sales for April, May, and June were $61,000, $81,000, and $71,000, respectively, what were the firm's budgeted collections for June?
A. $17,750.
B. $53,800.
C. $62,300.
D. $74,500.
E. None of the answers is correct.
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