Home Corporation Will Open a New Store on January 1

Multiple Choice

Home Corporation will open a new store on January 1. Based on experience from its other retail outlets, Home Corporation is making the following sales projections:

Home Corporation estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale.
-Based on these data, the balance in accounts receivable on January 31 will be:

A) $40,000
B) $28,000
C) $12,000
D) $58,000