Assume that a company prepared the following sales budget:

September	$ 600,000	November	$ 800,000
October	$ 750,000	December	$ 900,000

The following information is also available:

• Desired ending inventory is $20,000 plus 70% of the next months cost of goods sold.
• Cost of goods sold averages 60% of sales.
• Purchases are paid 30% in the current month and 70% in the next month.
• Budgeted sales each month are 70% credit and 30% cash.
• 40% of credit customers pay in the current month, 50% pay in the first month after the sale, and 10% pay in the second month after the sale.

What is the balance in accounts receivable at the end of December?

Multiple Choice

• $486,500

• $434,000

• $620,000

• $575,500