Leaverton's Forecast of Sales Is as Follows: July, $60,000; August

Multiple Choice

Leaverton's forecast of sales is as follows: July, $60,000; August, $90,000; September, $130,000. Sales are normally 80 percent cash and 20 percent credit in any month. Credit sales are collected in full in the following month. Merchandise cost averages 60 percent of sales price. The company desires an inventory as of September 30 of $52,000. The inventory as of June 30 was $25,000. The July 31 balance of accounts receivable will be

A) $12,000.
B) $48,000.
C) $18,000.
D) $0.