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

	Cash Sales	Credit Sales
January	$ 60,000	$ 160,000
February	$ 65,000	$ 180,000
March	$ 44,000	$ 140,000
April	$ 39,000	$ 124,000
May	$ 49,000	$ 210,000
June	$ 90,000	$ 180,000

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

45% in month following sale

5% in second month following sale

The accounts receivable balance on January 1 of the current year was $74,000, of which $50,000 represents uncollected December sales and $24,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 31? Multiple Choice

$87,200

$198,400

$105,000

$111,200