B. This is AP balance for November. See the correct answer for a complete explanation.

C. The correct amount is given as one of the other choices.

D. The amount of accounts payable in December is equal to the December purchases. This is because purchases are paid in the month following the purchase. Purchases made in December are made to support 20% of December sales and 80% of January sales. Thus, purchases in December are equal to an amount that will support $204,000 in sales ($220,000 × 20%) + ($200,000 × 80%). However, that $204,000 is the sales amount, which is based on the selling price and not on the company's cost for the inventory. The company's cost for the inventory is equal to 75% of the selling price, since its gross margin is equal to 25% of the selling price. Therefore, the AP are equal to 75% of estimated sales of $204,000, or $153,000.