The Sales Budget for Lyn's Clothing Co for the First

Multiple Choice

The sales budget for Lyn's Clothing Co for the first three months of the year is expected to be $30,000,$40,000 and $50,000 with 40% of each month's sales being on credit.Collections of accounts receivable are scheduled at 25% during the month of sale,70% during the month following the sale with 5% uncollectable.The total budgeted cash receipts from sales for the second month will be:

A) $36,400
B) $38,000
C) $43,600
D) $52,000