Answer (B) is correct . Cash collected during a month on sales for that month equals 44% of total sales. Hence, cash receipts in April on April’s sales are $275,000 ($625,000
Answer (A) is incorrect because The amount of $504,000 ignores $125,000 of April cash sales.
Answer (C) is incorrect because The amount of $653,000 includes $24,000 of bad debts from January sales.
Answer (D) is incorrect because The amount of $707,400 represents June collections.
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Karmee Company’s total cash receipts for the month of April will be
