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 $ 51,000 $ 130,000

April $ 46,000 $ 131,000

May $ 56,000 $ 200,000

June $ 80,000 $ 250,000

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:

50% in month of sale

30% in month following sale

20% in second month following sale

The accounts receivable balance on January 1 of the current year was $81,000, of which $50,000 represents uncollected December sales and $31,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 31?

Multiple Choice

• $95,200

• $100,000

• $126,200

• $221,400