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

	Cash Sales	Credit Sales
January	$60,000	$160,000
February	$65,000	$180,000
March	$38,000	$140,000
April	$43,000	$138,000
May	$53,000	$210,000
June	$90,000	$280,000

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

30% in month of following sales

25% in second month following sales

The accounts receivable balance on January 1 is $68,000. Of this amount, $55,000 represents uncollected December sales and $13,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 30?

$115,500

$205,000

$55,000

$150,000