carpon lumber sells lumber and general building supplies to building contractors in 380984

Carpon Lumber sells lumber and general building supplies to building contractors in a medium sized town in Montana. Data regarding the store’s operations follow: ‘ Sales are budgeted at $340,000 for November, $350,000 for December, and $370,000 for January. ‘ Collections are expected to be 55% in the month of sale, 44% in the month following the sale, and 1% uncollectible. ‘ The cost of goods sold is 75% of sales. ‘ The company desires to have an ending merchandise inventory equal to 60% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. ‘ Other monthly expenses to be paid in cash are $21,100. ‘ Monthly depreciation is $19,000. ‘ Ignore taxes. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A) $154,000 B) $157,500 C) $85,500 D) $303,600