Use the following information to solve the Questions 1, 2, and 3 below: The treasurer of Simmons Corporation, a newly formed software company, is trying to ascertain Simmons's cash flows for the next three months. Expected sales are: ---Expected Sales--- January: $200 February: $220 March: $300 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received. 3. Recorded bad debt expense for March should be: A) $12.5 B) $11 C) $10 D) None of the above