Woodpecker Co. has $305,000 in accounts receivable on January 1. Budgeted sales for January are $897,000. 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.$613,560 b.$818,080 c.$1,327,600 d.$1,022,600

Woodpecker Co. has $305,000 in accounts receivable on January 1. Budgeted sales for January are $897,000. 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. $613,560 Ob. $818,080 Oc. $1,327,600 Od. $1,022,600