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

	Cash Sales	Credit Sales
January	$40,000	$140,000
February	$45,000	$160,000
March	$40,000	$120,000
April	$45,000	$140,000
May	$55,000	$190,000
June	$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

The accounts receivable balance on January 1 is $70,000. Of this amount, $51,000 represents uncollected December sales and $19,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 30?

$135,000

$51,000

$114,000

$186,000