It is October of 2021 and OUR Mfg. Co. is preparing budgets for 2022 when they will open their new company on January 1. Their controller believes that 70% of their customers will buy on credit and 25% of those will pay their balance owed in the month after the sale, 60% will pay their balance owed in the 2nd month after the sale, 10% will pay in the 3rd month after the sale, and 5% will be bad debts. If the company makes sales (both cash and credit) that $100,000 in January of 2022, how much of the January credit sales should they estimate will be collected in February?

Answer is $17,500. How is this solved?