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:

January: Cash sales: $60,000 Credit sales: $40,000

February: Cash sales:$30,000 Credit sales: $50,000

March: Cash sales: $40,000 Credit sales: $60,000

April: Cash sales: $40,000 Credit sales: $80,000

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.

Based on this data, the balance in accounts receivable on January 31 will be:

Answer rating: 100% (QA)

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