Richards Corporation Has the Following Budgeted Sales for the First

Multiple Choice

Richards Corporation has the following budgeted sales for the first half of next year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. The total cash collected during January would be:

A) $270,000
B) $420,000
C) $345,000
D) $360,000