(Appendix 10A) Taft Corporation Collects Cash from Customers as Follows

Multiple Choice

(Appendix 10A) Taft Corporation collects cash from customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected. Bad debts are written off annually in December. Budgeted sales are all on credit and amount to:
May $600,000
June 700,000
July 500,000
August 600,000
What is the budgeted amount of cash to be collected in July?

A) $560,000
B) $554,000
C) $558,000
D) $551,000