7. Baker Company started business in October and collects 60% of its accounts receivable in the month of sale; 30% the following month; 5% the month after that; and 5% never collected. If all sales are on account and October sales were $60,000; November sales were $80,000; and December sales were $100,000. IF January sales were $120,000 how much total cash would Baker collect in January?

a. $80,000 b. $94,000 c. $100,000 d. $106,000 e. None of the above