The Kafusi Company has the following budgeted sales:

April May June July

Credit Sales....320,000 300,000 350,000 400,000

Cash Sales.....70,000 80,000 90,000 70,000

The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.

The budgeted accounts receivable balance on May 31 would be:

A. $180,000

B. $210,000

C. $242,000

I need to know how to solve this problem not just the answer.