Junk Fries has budgeted sales for June and July at $680,000 and $785,000, respectively. Sales are 80% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is the accounts receivable balance on July 31?

a) $235,500

b) $163,200

c) $628,000

d) 188,400