Question 1 Oak Furniture provided the following information relevant to its sales for December 2013 and the first quarter of 2014:

	Dec. 2013			Jan. 2014			Feb. 2014
	(Actual)			(Budgeted)			(Budgeted)
Credit sales	$	64,000		$	144,000		$	159,000
Cash sales	$	14,000		$	29,000		$	34,000

Based on the company's collection history, 6% of credit sales are uncollectible, 44% are collected in month of sale and the remainder collected in the following month. Cash collections in January from December 2013 credit sales would be:

A. $32,000.

B. $35,840.

C. $50,000.

D. $45,320.

Question 2

Meredith Company has completed its sales budget for the first quarter of 2014. Projected credit sales for the first four months of the year are shown below:

January	$24,000
February	$30,000
March	$39,000
April	$42,000

The company's past records show collection of credit sales as follows: 24% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be:

A. $36,840.

B. $39,000.

C. $25,440.

D. $32,160.