San Francisco Company Expects August Sales to Be $32,000

Multiple Choice

San Francisco Company expects August sales to be $32,000.Approximately 40% of sales are cash sales.Collection of credit sales are 50% in the month of sale,40% in the month following sale and 5% two months following sale.The remaining 5% is uncollectible.________ is the expected cash collection in August from August sales.

A) $8,000
B) $12,000
C) $16,000
D) $22,400