The LaGrange Corporation had the following budgeted sales for the first half of the current year:

	Cash Sales		Credit Sales
January	$	50,000	$	150,000
February	$	55,000	$	170,000
March	$	29,000	$	130,000
April	$	24,000	$	109,000
May	$	34,000	$	200,000
June	$	80,000	$	30,000

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 sales:

45% in month of sale

35% in month following sale

20% in second month following sale

The accounts receivable balance on January 1 of the current year was $71,000, of which $55,000 represents uncollected December sales and $16,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 31?

Multiple Choice

$115,800

$110,000

$131,800

$247,600