Drago Makes All Sales on Account, Subject to the Following

Drago makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $120,000, $160,000, and $220,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivables balance on August 31?

A) August Collections:$162,000, August 31 Receivables Balance: $182,000
B) August Collections:$174,000, August 31 Receivables Balance: $170,000
C) August Collections:$190,000, August 31 Receivables Balance: $154,000
D) August Collections:$262,000, August 31 Receivables Balance: $82,000
E) August Collections:$162,000, August 31 Receivables Balance: $170,000