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

The LaGrange Corporation had the following budgeted sales for the first half of the current year. January February March April May June Cash Credit Sales Sales $20,000 $120,000 $25,000 $140,000 $37,000 $100,000 $32,000 $117,000 $ 42,000 $170,000 $50,000 $110,000 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: 55% in month of sale 35% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $71,000, of which $54,000 represents uncollected December sales and $17,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 31? Multiple Choice $88,200 $71,200 $159,400 $76,500