A firm expects next year's sales to be $108,000,000. Estimate the year-end balance in accounts receivable if it expects the average collection period to be 42 days.

A) $ 8,200,000
B) $16,400,000
C) $12,600,000
D) $18,800,000
E) $25,200,000

Average Collection Period

The approximate amount of time that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Year-End Balance

The financial status of an account at the close of an accounting year, indicating the net value after all transactions.