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

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:

$50\%$ in month of sale

$40\%$ in month following sale

$10\%$ in second month following sale

What is the budgeted accounts recelvable balance on May $31?$

Multiple Choice

$$116,000$

$$120,000$

$$131\mathrm{.}000$

$$247,000$