Knot on a Log, Inc. is a merchandiser of rustic furniture. All sales are made on account. Cash collections from customers are normally $75\%$ in the first month following the month sale and $24\%$ in the second month following the month of sale. The balance is deemed uncollectible. August sales were $$95,000.$ September sales were $$100,000.$ October sales are expected to be $$122,000.$

Accounts payable consists solely of inventory purchases. All inventory purchases are made on account. Management takes full advantage of the $3\%$ discount allowed on purchases paid by the tenth of the following month. September purchases were $$105,000.$ October purchases are expected to be $$95,000.$

Additional expenses for the month of October are budgeted to be $$25,000.$ Of this amount, $$5,000$ is for bad debt expense and depreciation expense. In addition, during the month of October, the company expects to declare and pay $$3,000$ in dividends to its owners.

The beginning October $1$st cash balance is expected to be $$36,000.$ Calculate the excepted cash balance on October $31$st$.$

Question $3$ options:

$$3,950$

$$26,650$

$$5,800$

$$11,950$

$$8,950$