So there's 2^N choices, since at each point you either pick from A or from B. In the specific example you give where N happens to be 3 there are 8. For discussion you can characterise each set of decisions as a bit pattern.
So as a brute-force approach would try every single bit pattern.
But what should be obvious is that if the first few bits produce a number too large then every subsequent possible group of tail bits will also produce a number that is too large. So probably a better way to model it is a tree where you don't bother walking down the limbs that have already grown beyond your limit.
You can also compute the maximum totals that can be reached from each bit to the end of the table. If at any point your running total plus the maximum that you can obtain from here on down is less than K then every subtree from where you are is acceptable without any need for traversal. The case, as discussed in the comments, where every single combination is acceptable is a special case of this observation.
As pointed out by Serge below, a related observation is to us minimums and use the converse logic to cancel whole subtrees without traversal.
A potential further optimisation rests behind the observation that, as long as we shuffle each in the same way, changing the order of A and B has no effect because addition is commutative. You can therefore make an effort to ensure either that the maximums grow as quickly as possible or the minimums grow as slowly as possible, to try to get the earliest possible exit from traversal. In practice you'd probably want to apply a heuristic comparing the absolute maximum and minimum (both of which you've computed anyway) to K.
That being the case, a recursive implementation is easiest, e.g. (in C)
/* assume A, B and N are known globals */
unsigned int numberOfGoodArraysFromBit(
unsigned int bit,
unsigned int runningTotal,
unsigned int limit)
{
// have we ended up in an unacceptable subtree?
if(runningTotal > limit) return 0;
// have we reached the leaf node without at any
// point finding this subtree to be unacceptable?
if(bit >= N) return 1;
// maybe every subtree is acceptable?
if(runningTotal + MAXV[bit] <= limit)
{
return 1 << (N - bit);
}
// maybe no subtrees are acceptable?
if(runningTotal + MINV[bit] > limit)
{
return 0;
}
// if we can't prima facie judge the subtreees,
// we'll need specifically to evaluate them
return
numberOfGoodArraysFromBit(bit+1, runningTotal+A[bit], limit) +
numberOfGoodArraysFromBit(bit+1, runningTotal+B[bit], limit);
}
// work out the minimum and maximum values at each position
for(int i = 0; i < N; i++)
{
MAXV[i] = MAX(A[i], B[i]);
MINV[i] = MIN(A[i], B[i]);
}
// hence work out the cumulative totals from right to left
for(int i = N-2; i >= 0; i--)
{
MAXV[i] += MAXV[i+1];
MINV[i] += MINV[i+1];
}
// to kick it off
printf("Total valid combinations is %u", numberOfGoodArraysFromBit(0, 0, K));
I'm just thinking extemporaneously; it's likely better solutions exist.