Memphis Company anticipates total sales for April, May, and June of $850,000, $950,000, and $1,000,000 respectively. Cash sales are normally 20% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales during the month of May.

Multiple Choice

• $644,000.

• $738,000.

• $868,000.

• $678,000.

• $938,000.