Mike Is Concerned About the Cash Receipts Schedule of His

Mike is concerned about the cash receipts schedule of his business since all of the business's customers deal in credit instead of cash. Based on historical data, he is expecting to receive collections on accounts receivable (A/R) as follows: 55% in the month of sale, 40% in the next month after the sale, and 5% becomes uncollectible. Mike has decided to write off the business's uncollectible A/R at the end of second month after the sale. The following table provides the month-by-month summary of sales for Mike's business:
Considering the above data, which of the following statements is correct?

A) In the month of April, uncollectible sales of $750 are taken as a direct write-off to A/R, and the budgeted ending balance of A/R on April 30 is $750.
B) In the month of February, uncollectible sales of $500 are taken as a direct write-off to A/R, and the budgeted ending balance of A/R on February 28 is $6,750.
C) In the month of January, uncollectible sales of $4,500 are taken as a direct write-off to A/R, and the budgeted ending balance of A/R on January 31 is $0.
D) In the month of March, uncollectible sales of $500 are taken as a direct write-off to A/R, and the budgeted ending balance of A/R on March 31 is $7,250.