Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts receivable is $480,000, of which $280,000 pertain to sales that were made during June. Budgeted sales for July are $1,330,000. Ross collects 75% of sales in the month of sale; 10% in the following month; and the final 15% in the second month after the sale.

What is the budgeted balance of Ross's accounts receivable as of July 31?

Multiple Choice

• $1,277,500
• $1,055,500
• $500,500
• $1,225,500