Mitchell Company Had the Following Budgeted Sales for the Last

Mitchell Company had the following budgeted sales for the last half of last 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 credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
-What is the budgeted accounts receivable balance on December 1?

A) $80,000
B) $140,000
C) $94,500
D) $131,300