Mitchell Company had the following budgeted sales for the last half of last year:

	Cash Sales	Credit Sales
July	$40,000	$140,000
August	$45,000	$160,000
September	$40,000	$120,000
October	$45,000	$140,000
November	$55,000	$190,000
December	$70,000	$300,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:

40% in month of sales

45% in month of following sales

15% in second month following sales

What is the budgeted accounts receivable balance on December 1?

What is the budgeted accounts receivable balance on December 1?

$135,000

$121,300

$134,000

$114,000