Memphis Company anticipates total sales for April, May, and June of $1,000,000, $1,100,000, and $1,150,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are collected in the second month. Compute the amount of accounts receivable reported on the companys budgeted balance sheet for June 30.

a) $705,000

b) $1,017,500

c) $517,500

d) $558,750

e) $1,086,250