Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Copper Corporation has the following sales budget for the last six months of 2016:
Historically,the cash collection of sales has been as follows:
65 percent of sales collected in month of sale,
25 percent of sales collected in month following sale,
8 percent of sales collected in second month following sale,and
2 percent of sales is uncollectable.
-What is the ending balance of accounts receivable at the end of September assuming uncollectible balance is written off in the third month after the sale?

A) $199,000
B) $97,000
C) $89,800
D) $93,000
E) $88,000

Correct Answer:

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