Crocetti Corporation Makes One Product and Has Provided the Following

Multiple Choice

Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
Credit sales are collected:
40% in the month of the sale
60% in the following month
The budgeted accounts receivable balance at the end of February is closest to:

A) $544,500
B) $907,500
C) $605,000
D) $363,000