Zimmer Company reported the following information for 2011: October November December Budgeted sales $230,000 $220,000 $270,000 Budgeted purchases $120,000 $128,000 $144,000
• All sales are on credit.
• Customer amounts on account are collected 30% in the month of sale, 25% the next month, and 45% the third month.
• Cost of goods sold is 35% of sales.
• Zimmer purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
• Accounts payable is used only for inventory acquisitions. How much is Zimmer's accounts receivable balance at December 31st.?