Compton Company expects the following total sales:

Month	Sales
March	$	27,000
April	$	17,000
May	$	27,000
June	$	22,000

The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 75% in the month following the sale. The budgeted accounts receivable balance on May 31 is:

Multiple Choice

• $12,775.

• $14,175.

• $20,250.

• $19,740.