Trumbull Corporation Budgeted Sales on Account of $120,000 for July

Multiple Choice

Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience indicates that none of the sales on account will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be:

A) $169,800
B) $147,960
C) $197,880
D) $194,760