1. Historically, andy wood products has had no significant bad debt experience with its customers. Cash sales have accounted for 10% of total sales, and payments for credit sales have been received as follows:

40% of credit sales in the month of the sale

30% of credit sales in the first subsequent month

25% of credit sales in the second subsequent month

5% of credit sales in the third subsequent month

The forecast for both cash and credit sales is as follows:

Month

Sales

January

$95,000

February

$65,000

March

$70,000

April

$80,000

May

$85,000

What is the AR balance as of May 31?

Select one:

a. $67,500

b. $70,650

c. $76,500

d. None of the above