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.
-The March 31 balance in accounts receivable will be:

A) $100,000
B) $60,000
C) $95,000
D) $75,000