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5. McNulty & Agnes, Inc. has projected sales to be $260,000 in June, $270,000 in July and $300,000 in August.

The company expects to collect 25% of a month's sales in the month of sale, 60% in the month following the sale, and 15% in the second month following the sale. The budgeted Accounts Receivable balance, shown on the Balance Sheet, as of August 31st would be:

a. $140,500

b. $219,000

c. $237,000

d. $257,600

e. None of the above. The correct answer is: 

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