The Sales Budget for Joy Time Toys for the First

Multiple Choice

The sales budget for Joy Time Toys for the first three months of the year is expected to be $50 000, $40 000 and $60 000 with 30% of each month's sales being on credit. Collections of accounts receivable are scheduled at 40% during the month of sale, 55% during the month following the sale with 5% uncollectable. The total budgeted cash receipts from sales for the second month will be:

A) $32 800.
B) $38 000.
C) $40 000.
D) $41 050.