The Records of Morgantown, Inc Collection Pattern:
60 Percent in Month of Sale
40 Percent

Multiple Choice

The records of Morgantown, Inc.show the following forecasted sales: $\begin{array} { l r } \text { Month } & \text { Sales } \\ \text { September } & \$ 400,000 \\ \text { October } & 500,000 \\ \text { November } & 300,000 \\ \text { December } & 200,000 \end{array}$
Collection pattern:
60 percent in month of sale
40 percent in month following the sale
$\begin{array}{lr}\text { Accounts receivable as of August } 31 & \$ 70,000 \\\text { Finished goods inventory as of August } 31 & 8,000 \text { units }\end{array}$ The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of next month's sales.
How much is Accounts Receivable as of October 31?

A) $420,000
B) $460,000
C) $240,000
D) none of the above