Richards Corporation had the following budgeted sales for the first half of next year:

	Cash Sales	Credit Sales
January	$50,000	$150,000
February	$55,000	$170,000
March	$34,000	$130,000
April	$39,000	$134,000
May	$49,000	$200,000
June	$80,000	$240,000

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:

45% in month of sales

35% in month of following sales

20% in second month following sales

The accounts receivable balance on January 1 is $64,000. Of this amount, $55,000 represents uncollected December sales and $9,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 30?

$55,000

$136,800

$191,800

$110,000

Please Explain