Month Sales

March $ 32,000

April $ 22,000

May $ 16,000

June $ 27,000

The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 71% in the month following the sale with the remainder being uncollectible and written off.

The budgeted accounts receivable balance on May 31 is:

A. $8,400.

B, $12,000.

C. $7,000.

D. $22,170.