Ratchet Manufacturing Anticipates Total Sales for August, September, and October

Ratchet Manufacturing anticipates total sales for August, September, and October of $200,000, $210,000, and $220,500 respectively. Cash sales are normally 25% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale.
- Compute the amount of accounts receivable to be reported on the company's budgeted balance sheet for August.

A) $52,500.
B) $50,000.
C) $200,000.
D) $157,500.
E) $150,000.