June sales were $40,000 while projected sales for july and august were $50,000 and $60,000, respectively. sales are 40% cash and 60% credit. all credit sales are collected in the month following the sale. calculate expected collections for july.

select one:

a. $50,000
b. $54,000
c. $44,000
d. $36,000

C. $44,000

Step-by-step explanation:

Projected sales;

June = $40,000

July = $50,000

August = $60,000

Sales are 40% cash and 60 % credit with credit sales collected in the month following the sale

Expected collection for July will include 40% sales in July and 60 % sales in June

Therefore,

Expected collection for July =  (40% × $50,000) + (60% × $40,000)

= $20,000 + $24,000

= $44,000

The right option is C. $44,000.