Woodpecker co. has $296000 in accounts receivable on january 1.

Woodpecker Co. has $296000 in accounts receivable on January 1. Budgeted sales for January are $860000. 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 are sales from:

A. $812,000

B. $688,000

C. $468,000

D. $984,000