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.

4. Accounts payable at the end of December would be:

A. $65,000 B. $68,250 C. $130,000

D. $133,250