A company's past experience indicates that 60% of its credit sales are collected in the month of sale 30% in the next month and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: $$\begin{array}{lr}\text{ January }& \$360,000\\ \text{ February }& 216,000\\ \text{ March }& 540,000\end{array}$$ The cash inflow in the month of March is expected to be

A) $406800.
B) $307800.
C) $324000.
D) $388800.

Credit Sales

Sales made on credit, where the buyer is allowed to pay the seller at a later date, as opposed to immediate payment transactions.

Cash Inflow

The total amount of money being transferred into a business, typically measured over a certain period of time.

Budgeted Sales

The forecasted sales revenue a company expects to generate in a future period, based on market analysis, historical data, and sales targets.