Excellent Corp. expects the following total sales for the coming year:

Quarter 1	$10,000
Quarter 2	$12,000
Quarter 3	$15,000
Quarter 4	$20,000

From past experience, Excellent Corp. expects that, on average, 20% of total sales are cash and 80% of total sales are on credit. Of the credit sales, Excellent Corp. expects that 80% will be paid in cash during the quarter of sale, and the remaining 20% will be paid in the following quarter. The balance in Accounts Receivable as of the last quarter of the prior year was $1,500. This will be collected in cash during the first quarter of the coming year. Calculate the total amount of cash receipts from sales expected in Quarter 1 of the coming year.

a.$9,900 b.$4,000 c.$6,400 d.$8,400

Please show work and provide explanation. Thank you!