The following information pertains to the October operating budget for Flockhart Corporation. Budgeted sales for October $100,000 and November $200,000.

• Collections for sales are 60% in the month of sale and 40% the next month.
• Gross margin is 30% of sales.
• Administrative costs are $10,000 each month. Beginning accounts receivable (October 1) $20,000. Beginning inventory (October 1) $14,000.
• Beginning accounts payable (October 1) $60,000. (All from inventory purchases.) Purchases are paid in full the following month.
• Desired ending inventory is 20% of next month's cost of goods sold (COGS).
• No loans are outstanding on October 1

At the end of October, budgeted accounts receivable is:

• $40,000.
• $60,000.
• $20,000.
• None of the above is correct.