The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 20,000 $ 120,000 February $ 25,000 $ 140,000 March $ 37,000 $ 100,000 April $ 32,000 $ 117,000 May $ 42,000 $ 170,000 June $ 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?

Answers:

• $71,200

• $88,200

• $76,500

• $159,400