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Mitchell Company had the following budgeted sales for the last half of last year: Picture The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
What is the budgeted accounts receivable balance on December 1?
A. $80,000
B. $140,000
C. $94,500
D. $131,300
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