The Kansas Company Is Preparing a Cash Budget for the Month

The Kansas Company is preparing a cash budget for the month of July. The following information on accounts receivable collections is available from Kansas' past collection experience:
$\begin{array}{llr} \text { Percent of current month's sales collected this month } &15\%\\ \text { Percent of prior month's sales collected this month } &72\%\\ \text { Percent of sales two months prior to current month collected this month } &6\%\\ \text { Percent of sales three months prior to current month collected this month} &3\%\\\end{array}$

The remaining 4% are not collected and are written off as bad debts.
Credit sales to date are as follows:
$$\begin{array} { l l l } \text { July (estimated) } & \$ 150,000 \\\text { June } & \$ 135,000 \\\text { May } & \$ 120,000 \\\text { April } & \$ 145,000\end{array}$$
What are the estimated collections in July?

A) $125,250.
B) $131,250.
C) $133,250.
D) $137,250.