Starfish Industries' Sales Budget for the First Quarter of the Upcoming

Multiple Choice

Starfish Industries' sales budget for the first quarter of the upcoming year shows budgeted sales of $325,000, $350,000, and $310,000 in January, February, and March, respectively.All sales are made on credit.The cash receipts budget for March shows total cash receipts equal to $296,780.Starfish grants a discount to customers who pay within 10 days of the invoice.Starfish collects 60% of sales within the discount period, 20% in the month of sale but outside the discount period, 15% in the month following sale and the remainder is uncollectible.What is the discount offered by Starfish, and what are the cash collections in March associated with March sales?

A) 2%; $244,280
B) 1.5%; $245,210
C) 2%; $182,280
D) 1.5%; $183,210