Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions.
Patiomaster Products manufactures patio furniture. The estimated numbers of sets to be sold in the last three months of 2015 and the first month of 2016 is: Finished goods inventory at the end of September is 2,000 units. Finished goods inventory is set at 20 per cent of next month's sales.
-If a firm had credit sales of $1,250,000 for March and collected its sales as 20% in the month of sale and 80% in the month following the sale, how much of March sales would be collected in cash in March?

A) $250,000
B) $1,000,000
C) $312,500
D) $1,250,000