Budgeted Sales in Allen Company Over the Next Four Months

Multiple Choice

Budgeted sales in Allen Company over the next four months are given below:
$$\begin{array} { | r | r |r |r| r | } \hline& \text { September } & \text { October } & \text { November } & \text { December } \\\hline \text { Budgeted Sales } & \$ 100,000 & \$ 160,000 & \$ 180,000 & \$ 120,000\\\hline\end{array}$$
Twenty-five percent of the company's sales are for cash,and 75% are on account.Collections for sales on account follow a stable pattern as follows: 50% of a month's sales are collected in the month of sale,30% are collected in the month following sale,and 15% are collected in the second month following sale.The remainder is uncollectible.Given these data,what should be cash collections for December?

A) $133,500.
B) $120,000.
C) $138,000.
D) $153,000.