Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $66,000 and $64,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale and the remaining 40% in the following month. What amount of accounts receivable would the company report in its balance sheet at the end of the second month?

Multiple Choice

• $64,800

• $25,600

• $24,000

• $39,600