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Richards Corporation had the following budgeted sales for the first half of next year: Cash Sales Credit Sales January $30,000 $130,000 February $35,000 $150,000 March
Richards Corporation had the following budgeted sales for the first half of next year:
| Cash Sales | Credit Sales | |
| January | $30,000 | $130,000 |
| February | $35,000 | $150,000 |
| March | $46,000 | $110,000 |
| April | $51,000 | $146,000 |
| May | $61,000 | $180,000 |
| June | $60,000 | $360,000 |
| 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 |
| 40% in month of following sales |
| 20% in second month following sales |
The accounts receivable balance on January 1 is $76,000. Of this amount, $60,000 represents uncollected December sales and $16,000 represents uncollected November sales.
| What is the budgeted accounts receivable balance on May 30? |
Multiple Choice
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$137,200
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$108,000
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$60,000
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$197,200
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