Reference no: EM132774030

All sales are on credit. Collections of credit sales follows

Records for Crandon, Inc show past sales to be January $300,000; February $340,000; and March $360,000.

Budgeted sales A

pril $400,000;

May $500,000; and

June $600,000.

--- 25% in the month following sales

--- 70% in the month of sales

--- 5% in the second month following sales

Problem 1: The company gives a 2.5% cash discount to customers paying in the month of sale. What is total collections for April?

Select one:

a. $377,325

b. $380,000

c. $387,000

d. None of the above