(TCO 7) Pardee Company makes 30% of its sales for cash and 70% on account.

(TCO 7) Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year:

Sales Month 1 $65,000

Sales Month 2 $70,000

Sales Month 3$50,000

Sales Month 4 $30,000

Total cash receipts in Month 4 will be:

$38,000.

$47,900.

$27,230.

$36,230.