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Woodpecker Co. has $298,000 in accounts receivable on January 1. Budgeted sales for January are $857,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a. $983,600

b. $1,281,600

c. $786,880

d. $590,160