Sandler Corporation wishes to prepare a cash budget for November 2021.

Sales, purchases, and expenses for October (actual) and November and December (estimated) are as follows:

Sales Purchases Expenses

October $48,000 $35,000 $14,000

November 40,000 30,000 11,000

December 45,000 22,000 9,500

Sales: All sales are on credit, and the company's experience shows that, on the average, 80 percent of sales are collected in the month of sale and the balance in the following month. A 2 percent discount is allowed on all collections in the month of sale.

Purchases: The company pays 60 percent of purchases in the month of purchase and the balance in the following month. The company is allowed an average discount of 1 percent on payments made in the month of purchase.

The cash payment in December for December purchases are expected to be:

$12,000

$24,980

$25,200

$30,900