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Richards Corporation has the following budgeted sales for the first half of next year: Cash Sales Credit Sales January $80,000 $180,000 February $85,000 $200,000 March

Richards Corporation has the following budgeted sales for the first half of next year:
Cash Sales Credit Sales
January $80,000 $180,000
February $85,000 $200,000
March $36,000 $160,000
April $41,000 $136,000
May $51,000 $230,000
June $110,000 $260,000

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:
55% in month of sales
30% in month of following sales
15% in second month following sales
The accounts receivable balance on January 1 is $66,000. Of this amount, $54,000 represents uncollected December sales and $12,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 30?

- $103,500

- $123,900

- $177,900

- $54,000

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