Answer:
A) $279,200
Explanation:
September sale: 302,000, 80% paid on credit which is = 80% x 302,000 = 241,600, of which 50% are collected in the following month (October), which is equal to 241,600 x 50% = $120,800
October sale = 264,000
20% paid on cash, which is = 20% x 264,000 = 52,800
80% paid on credit and 50% of which is collected in the month of sale (October) = 80% x 50% x 264,000 = $105,600
Total cash collections for October = 120,800 + 52,800 + 105,600 = $279,200
