During September 2020, ABC Corporation is preparing for its 2021 sales and receivables forecast. The forecasted sales is P3,500,000 for the fourth quarter of 2020, P10,000,000 for the year 2021,

During September 2020, ABC Corporation is preparing for its 2021 sales and receivables forecast. The forecasted sales is P3,500,000 for the fourth quarter of 2020, P10,000,000 for the year 2021, and P2,500,000 for the first quarter of 2022. All forecasted sales are expected to be comprised of 10% cash and 90% credit. For the 2021 sale, it will be earned throughout the four quarters at 20%, 25%, 15% and 40% respectively. The receivable settlement trend is 40% to be collected during the month after month of sale, 55% to be collected after two months from month of sale and 5% to be written off after three months from month of sale. How much is the forecasted gross accounts receivable balance as of the end of the 3rd quarter of 2021?

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