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The PDQ Company makes collections on credit sales according to the following schedule: 2 5 % in month of sale 7 0 % in month

The PDQ Company makes collections on credit sales according to the following schedule:
25% in month of sale
70% in month following sale
4% in second month following sale
1% uncollectible
The following sales have been budgeted
Month Sales
April $400,000
May $490,000
June $400,000
The budget for cash collections in June will be:
*
$510,000.
D. $459,000
C. $460,400.
B. $311,000.

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