The Dilly Company marks up all merchandise at 25% of gross purchase price. All purchases are made on account with terms of 1/10, (1% discount if paid in 10 days) net/60 (full amount due within 60 days). Purchase discounts, which are recorded as miscellaneous income, are always taken. Normally, 60% of each months purchases are paid for in the first month after purchase, whereas the other 40% are paid during the first 10 days of the first month after purchase. Inventories of merchandise at the end of each month are kept at 30% of the next months forecasted cost of goods sold. Terms for sales on account are 2/10 (2% discount if paid within 10 days), net/30 (full amount due in 30 days). Cash sales are not subject to discount. Fifty percent of each months sales on account are collected during the month of sale, 45% are collected in the succeeding month, and the remainder is usually uncollectible. Seventy percent of the collections in the month of sale are subject to discount, and 10% of the collections in the succeeding month are subject to discount (2%). Forecasted sales data and cost of sales for selected months are as follows:

	Sales on Account(gross)	Cash Sales	COGS
Dec	$1,900,000	$400,000	$1,840,000
Jan	$1,500,000	$250,000	$1,400,000
Feb	$1,700,000	$350,000	$1,640,000
Mar	$1,600,000	$300,000	$1,520,000

Forecasted sales discounts to be taken by customers making remittances during February are:

a) $5,250 b) $15,925 c) $30,500 d) $11,900 e) None of the above