Question 7 Bellinger and Betts LLP is a merchandising company based in Los Angeles, California that prepared the following: September October November December Budgeted Sales $120,000 $175,000 $210,000 $145,000 . Fifteen percent of the company's sales are for cash and 85% are on account Collections for sales on account follow a pattern as follows: 60% of a month's credit sales are collected in the month of sale, 25% are collected in the month following sale and 10% are collected in the second month following sale. Bellinger and Betts LLP deerns the remainder to be uncollectible. Cost of goods sold is 80% of sales and ending inventory is maintained at $45,000 plus 12% of the following month's cost of goods sold. Sixty percent of purchases are paid for in cash at the time of purchase, and 20% are paid for in each of the next two months. Purchases for the previous September and October were $101.280 and $143,360, respectively. Interest payments of $18.000 are paid quarterly in October and January What is the balance of accounts receivable (net of bad debt expenses) on the December 31st balance sheet? $71.750 550.983 589.500 576075