Use this information about Nuthatch Corporation to answer the question that follows.

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first 3 months of business-September, October, and November-are $245,000, $318,000, and $423,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in September from accounts receivable are estimated to be

a. $294,000

b. $171,500

c. $245,000

d. $137,200