Oakton Furniture provided the following information relevant to its sales for December 2013 and the first quarter of 2014:

Dec 2013/Actual Jan 2014/ Budget Feb 2014/ Budget Mar 2014/ Budget

Credit Sales- 120,000 280,000 310,000 220,000

Cash sales- 20,000 50,000 60,000 24,000

Picture Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the remainder collected in the following month. Cash collections in January from December 2013 credit sales would be:

A. $69,600. B. $81,200. C. $72,000. D. $84,000.