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

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Accounting

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

Cash Sales Credit Sales
January $ 90,000 $ 190,000
February $ 95,000 $ 210,000
March $ 30,000 $ 170,000
April $ 25,000 $ 110,000
May $ 35,000 $ 240,000
June $ 120,000 $ 40,000

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

40% in month following sale

10% in second month following sale

The accounts receivable balance on January 1 of the current year was $65,000, of which $50,000 represents uncollected December sales and $15,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 31?

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