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?