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Ortiz Company estimates the following sales for 2021: Q1 - 200 units Q2 - 260 units Q3 - 330 units Q4 - 300 units All

Ortiz Company estimates the following sales for 2021:

Q1 - 200 units

Q2 - 260 units

Q3 - 330 units

Q4 - 300 units

All sales are on account, and each unit sells for $35. Ortiz Company collects 90% of sales in the quarter of the sale and 10% in the following quarter. At January 1, 2021, the balance in Accounts Receivable is $950.

What are expected cash collections in Q1 of 2021?

  • A.

    $7,000

  • B.

    $6,300

  • C.

    $5,350

  • D.

    $7,250

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