Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Material purchases January $ 12,940 February March $ 15,050 $ 11,870 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,500. The expected January 31 Accounts Payable balance is: Multiple Choice $12,940. $10,220. $7,500. $7,525. Multiple Choice $12,940. $10,220. $7,500. $7,525. $6,470