Bright Corporation began its operations on October 1 of the current year. Budgeted sales for the first three months of business are $300,000, $420,000, and $500,000, respectively, for October, November, and December. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections from accounts receivable in October are _____.

a. $168,000

b. $190,000

c. $140,000

d. $175,000