O'Neill Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. O'Neill 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 reminder the following month. The January cash collection from sales are?

Question

O'Neill Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. O'Neill 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 reminder the following month. The January cash collection from sales are?