Kuzma Foods, Inc. has budgeted sales for June and July at $670,000.00 and $720,000.00, respectively. Sales are 80% credit, of which 60% is collected in the month of sale and 40%

is collected in the following month. What is the budgeted Accounts Receivable balance on July 31?

A. $230,400.00

B. $288,000.00

C. $214,400.00

D. $576,000.00

2)

Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year:

	Jan	Feb	March
Sales (30% cash)	$400,000.00	$700,000.00	$900,000.00

The company collects 60% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.

A. $406,000.00

B. $700,000.00

C. $504,000.00

D. $616,000.00