What are the expected total collections for July given the June sales and projected sales for July?

To determine the expected total collections for July based on June sales and projected sales for July, it's important to understand how collections from sales are recorded in accounting. Typically, collections represent cash inflows from either the current month's sales or receivables generated in prior periods.

If the correct answer is based on calculated total collections, it suggests that the total expected for July includes collections from June's credit sales and any anticipated cash sales or collections from sales made in July. Typically, a portion of sales made in one month might be collected in the following month, and understanding the payment timeline is crucial.

The amount of $5,525 likely reflects both the expected collections from prior sales and current sales for July. This figure may take into account the percentage of June’s sales that are collectible in July, plus any cash sales that are expected in July, accurately projecting total outflows.

This insight on the payment structure and timing of collections from sales helps in understanding expected cash flow and ensuring that working capital is effectively managed. As such, the answer provided aligns with the dynamics of accounts receivable and forecasting cash collections.