The LaGrange Corporation Had the Following Budgeted Sales for the First

Multiple Choice

The LaGrange Corporation had the following budgeted sales for the first half of the current year: 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 sale40% in month following sale5% in second month following saleThe accounts receivable balance on January 1 of the current year was $82,000, of which $63,000 represents uncollected December sales and $19,000 represents uncollected November sales.What is the budgeted accounts receivable balance on May 31?

A) $72,450
B) $85,500
C) $91,450
D) $163,900