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:
$$\begin{array} { | l | c | } \hline \text { Percent of current month's sales collec ted this } & 15 \% \\\text { month } & \\\hline \text { Percent of prior month's sales collected this month } & 72 \% \\\hline \text { Percent of sales two months prior to current month } & 6 \% \\\text { collected this month } & \\\hline \text { Percent of sales three months prior to current month } & 3 \% \\\text { collected this month } & \\\hline\end{array}$$
The remaining 4% are not collected and are written off as bad debts.Credit sales to date are as follows:
$$\begin{array} { | l | r | } \hline \text { Juby-estimated } & \$ 150,000 \\\hline \text { June } & \$ 135,000 \\\hline \text { May } & \$ 120,000 \\\hline \text { April } & \$ 145,000 \\\hline\end{array}$$ What are the estimated collections in July?

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