Reference: 20_03 Berkley Co.'s Sales Are 10% for Cash and 90% on 90

Multiple Choice

Reference: 20_03
Berkley Co.'s sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales.
-Assume that total sales for January and February are budgeted to be $50,000 and $100,000,respectively.What are the expected cash receipts for February from current and past sales? Round all calculations to full dollar amounts.

A) $80,500
B) $71,500
C) $34,500
D) $61,500
E) $59,500