Wichita Industries' Sales Are 10% Cash and 90% on Credit

Multiple Choice

Wichita Industries' sales are 10% 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 second 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 are budgeted to be $50,000.What are the expected cash receipts for January from the current and past sales?

A) $18,500.
B) $51,500.
C) $51,900.
D) $55,500.
E) $60,500.