The Professional Service Company expects 80% of sales for cash  and 20% on credit. The company collects 70% of its credit sales in the  month following sale, 25% in the second month following sale, and 5% are not collected (that is, they are "bad debts"). Expected sales for June, July, and August are $64,000, $70,000, and $60,000, respectively. What  are the company's expected total cash receipts in August?

Multiple Choice

$61,000.

• $77,000.
• $121,200.
• $65,000.
• $13,000.