Monetary Company has the following sales budget for the last six months of 2014:

July $400,000 October $360,000

August 320,000 November 400,000

September 440,000 December 376,000

Historically, the cash collection of sales has been as follows:

65% of sales collected in the month of sale,

25% of sales collected in the month following the sale,

8% of sales collected in the second month following the sale, and

2% of sales are uncollectible.

What is the ending balance of accounts receivable for September assuming uncollectible balances are written off during the second month following the sale?

• A.

  $176,600

• B.

  $398,000

• C.

  $186,000

• D.

  $194,000