TB MC Qu. 10-66 (Algo) Total budgeted cash collections in December: Collection Corporation Information pertaining to Collection Corporation sales revenue is presented below: Cash sales Credit sales November $ 98,000 290,000 $ 388,000 December $ 127,000 452,000 $ 579,000 January $ 80,000 236,000 $ 316,000 Total sales Management estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 70% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections for Collection Corporation in December are: Multiple Choice $556,185 O O $376,020 O $496,255. O $502,535 O O $508,200