Falcons Company Expects May Sales to Be $10,000

Multiple Choice

Falcons Company expects May sales to be $10,000.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 May from May sales.

A) $4,000
B) $5,000
C) $7,000
D) $10,000