Question: Richards Corporation had the following budgeted sales for the first half of next year: Cash Sales Credit Sales January $60,000 $160,000 February $65,000 $180,000 March $49,000 $140,000 April $54,000 $149,000 May $64,000 $210,000 June $90,000 $390,000 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 credit sales: 50% in month of sales 45% in month of following sales 5% in second month following sales The accounts receivable balance on January 1 is $79,000. Of this amount, $50,000 represents uncollected December sales and $29,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 30?
$112,450
$162,450
$50,000