Windy City Kite Company Has Prepared Sales Forecasts for the First

Windy City Kite Company has prepared sales forecasts for the first quarter of Year 3 as shown in the top row of the table. Half of Windy City's kite sales are cash and the other half are credit. Windy City collects credit sales the month following the credit sale. What are Windy City's ending accounts receivable in February? Windy City Kite Company
Sales Forecast and Collections Forecast
$\begin{array}{|l|c|c|c|} \hline& \text { December } & \text { January } & \text { February } \\\hline \text { Sales Forecast } & \$ 1,100 & \$ 1,000 & \$ 2,000 \\\hline \text { Cash Collections } & & & \\\hline \begin{array}{l}\text { Collections from Sales } \\\text { last month }\end{array} & & & \\ \hline \text { Total Cash Inflows } & & & \\\hline & & & \\\hline \text { Beginning accounts } & & 550 & 500 \\\text { receivable } & & & \\\hline \text { Ending accounts } & & \$ 500 & \\\text { receivable } & & & \\\hline\end{array}$

A) $500
B) $1,000
C) $1,250
D) $1,500
E) $2,500