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Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $846,000. Woodpecker Co. expects to sell 20% of its merchandise

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Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $846,000. 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. $778,240 b. $972,800 c. $1,268,800 d. $583,680

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