All of Porter Corporation's Sales Are on Account

Multiple Choice

All of Porter Corporation's sales are on account. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 10% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data for the company: Cash receipts in April are expected to be:

A) $420,000
B) $545,000
C) $605,000
D) $185,000