Assume the following budgeted information for a merchandising company:

• Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively.
• Cash collections related to credit sales are expected to be 75% in the month of sale, 25% in the month following the sale.
• The cost of goods sold is 65% of sales.
• Each months ending inventory equals 20% of next months cost of goods sold.
• 40% of each months merchandise purchases are paid in the current month and the remainder is paid in the following month.
• Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500.
• Monthly depreciation expense is $20,000.

The accounts receivable balance at December 31^st would be:

Multiple Choice

• $165,000

• $81,300

• $117,500

• $55,000