Office Warehouse Supplies Inc. had cash and credit customers. The company estimates that 10% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the sales on account, 50% are expected to be collected in the month of the sale, 40% in the month following the sale and the remainder in the second month following the sale.

January $250,000 February $275,000 March $260,000

Prepare a schedule indicating the cash collections from sales for January, February, and March.

1. Total Cash collection for January are?

a) 137,500

b) 155,000

c) 175,000

d) 143,500

2. Total Cash collections for February are?

a) 250,000

b) 241,250

c) 245,000

d) 247,000

3. Total Cash collections for March are?

a) 260,000

b) 216,000

c) 246,000

d) 264,500

Please show work