Compton Company expects the following total sales:

Month Sales:

March $ 23,000

April $ 13,000

May $ 31,000

June $ 18,000

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:

$23,250.

$16,275.

$14,580.

$14,875.