Answer:
A) $160,000
Explanation:
To calculate Nichola's accounts receivable at the end of the current business cycle we have to add credit sales during the fifth and sixth months:
accounts receivables = $150,000 + $10,000 = $160,000
The credit sales made during the sixth month should be received during the seventh month and the credit sales made during the fifth month should be paid next year (in 9 months). Since the business cycle is only 6 months long, any credit sale that should be collected beyond the sixth month, should be included under accounts receivables.
