Krazy Kanuck Company has all sales on account. The collection pattern is 45% collected in the month of sale; 40% collected in the month following sale; 10% collected in the second month following sale; and 5% uncollectible. The June 30^th account receivables amount of $25,000 will be collected in full in July. Determine the amount deemed uncollectible in the entire quarter ending September 30.

Budgeted sales for the next four months are: July 30,000 units; August 20,000 units; September 25,000 units and October 40,000 units.

The selling price is $20 per unit.

a. $50,000 b. $150,000 c. $75,000 d. $25,000