QUESTION 40

1. Green Company is trying to estimate its cash inflows for the third quarter by month.There are cash sales each month equal to 25 percent of total sales. The collection pattern for credit sales has been: 60 percent in the month of sale; 30 percent in the month after sale; and the rest two months after sales. Uncollectible accounts are negligible. The sales for the quarter are estimated as follows: July, $30,000; August, $15,000; September $35,000. Accounts Receivable on June 30 were $10,000
   The Accounts Receivable balance on September 30th was:

   	A.	$11,625
   	B.	$ 8,500
   	C.	$12,000
   	D.	$ 9,000