Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for May?

A. $69,000.
B. $60,000.
C. $21,000.
D. $75,000.
E. None of the answers is correct.


Answer: B

Business

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