Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January. Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

3. The accounts receivable balance, net of uncollectible accounts, at the end of December would be:

A. $82,000 B. $113,400 C. $60,000

D. $54,000