Budgeted sales in Allen Company over the next four months are given below:
September October November December
Budgeted sales $100,000 $160,000 $180,000 $120,000
Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be:
a. $153,000.
b. $138,000.
c. $120,000.
d. $103,500.