June Sales Were $40,000 While Projected Sales for July and August

Multiple Choice

June sales were $40,000 while projected sales for July and August were $50,000 and $60,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. Calculate expected collections for July.

A) $36,000
B) $44,000
C) $50,000
D) $54,000