Camellia, a Merchandising Company, Has Provided the Following Extracts from Their

question 153

Multiple Choice

Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: $$\begin{array} { | l | l | l | c | } \hline & \text { Jan } & \text { Feb } & \text { March } \\\hline \text { Sales } ( 25 \% \text { cash } ) & \$ 500,000 & \$ 600,000 & \$ 800,000 \\\hline\end{array}$$ The company collects 70% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.

• A) $465,000
• B) $427,500
• C) $577,500
• D) $600,000

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