Kevin Montgomery Retail seeks your assistance to develop cash and other budget information for May, June, and July. At April $30,$ the company had cash of $$14,500,$ accounts receivable of $$473,000,$ inventories of $$482,250,$ and accounts payable of $$169,055.$ The budget is to be based on the following assumptions:

SALES:

Each month's sales are billed on the last day of the month. Customers are allowed a $3\%$ discount if payment is made within $10$ days after the billing date. Receivables are recorded in the accounts at their gross amounts $($not net of discounts$).55\%$ of the billings are collected within the discount period; $30\%$ are collected by the end of the month; $9\%$ are collected by the end of the second month; and $6\%$ turn out to be uncollectible.

PURCHASES:

The marketing, general, and administrative expenses and $60\%$ of all purchases of merchandise are paid in the month purchased, with the remainder of merchandise purchases paid in the following month. The number of units in each month's ending inventory is equal to $125\%$ of the next month's units of sales. The cost of each unit of inventory is $$30.$ Marketing, general, and administrative expenses, of which $$39,000$ is depreciation, are equal to $15\%$ of the current month's sales.

Actual and projected sales are as shown below:

Dollars Units

March $ $508,00015,400$

April $ $520,00015,700$

May $ $512,00015,500$

June $ $492,00015,000$

July $ $516,00015,600$

August $ $516,00015,800$

What are the budgeted cash collections during the month of May?

Multiple Choice

$$507,315.$

$$510,345.$

$$487,720.$

$$479,140.$