The LaPann Company has obtained the following sales forecast data:

July August September October

Cash sales	$80,000	$70,000	$50,000	$60,000
Credit sales	240,000	220,000	180,000	200,000

The regular pattern of a collection of credit sales is 20% in the month of sale, 70% in the following month of sale, and the remainder in the second month following the month of sale. There are no bad debts.

Required:

1. The budgeted accounts receivable balance on September 30 is:

A) $126,000

B) $148,000

C) $166,000

D) $190,000

2. The budgeted cash receipts for October are:

A) $188,000

B) $248,000

C) $226,000

D) $278,000

3. Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following the sale, and 6% in the second month following the sale. The remainder is uncollectible. Budgeted sales for the next four months are:

	January	February	March	April
Budgeted sales	$200,000	$300,000	$350,000	$250,000

Cash collections in April are budgeted to be:

A) $321,000

B) $313,000

C) $320,000

D) $292,000