Reference no: EM131755617

Question: At the beginning of August 2017, Mullin Athletics had a $0 balance in Accounts Receivable. In the month of August, they signed three contracts with different schools to provide athletic apparel:

1: Provide 150 football uniforms at a selling price of $75 each and a cost of $40 each, delivered on August 12.

2: Provide 150 football uniforms at a selling price of $75 each and a cost of $40 each delivered on August 14, 36 basketball uniforms at a selling price of $60 each and a cost of $30 each delivered on October 1.

3: Provide 50 basketball uniforms and 50 track uniforms; 50 basketball uniforms at a selling price of $60 each and a cost of $30 each delivered on October 4, 50 track uniforms yet to be delivered with a selling price of $50 and a cost of $25. The contract is dependent on delivery of track uniforms.

Assuming they have not yet received payment for any of the uniforms, what amount would Mullin Athletics have in their Accounts Receivable account on their December 31, 2017, balance sheet?

A : $30,160

B : $27,660

C : $13,410

D : $24,660