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 $50,000 and $60,000, respectively. The company expects to collect 40% of its credit sales in the month of the sale, 55% in the following month, and 5% is deemed uncollectible. What amount of accounts receivable (net) would the company report in its balance sheet at the end of the second month?

Multiple Choice

• $33,000

• $24,000

• $54,500

• $51,500