Sugar Industries Makes All Sales on Credit with 60% of the Payment

question 1

Multiple Choice

Sugar Industries makes all sales on credit with 60% of the payment received in the month of sale, 20% in the month following the sale, 15% in the 2^nd month following sale, and the remaining 5% remains uncollected.
Budgeted sales are:
July $100 000
August $140 000
September $120 000
October $150 000
The budgeted receipts from debtors for September are:

• A) $120 000
• B) $135 000
• C) $115 000
• D) $100 000