Wright Corporation began its operations on Sept. 1 of the current year. Forecasted sales for the first three months of business are $240,000, $300,000, and $420,000 respectively for Sept, Oct, and Nov. The company expects to sell 20% of those sales for cash and 80% on account. Of the sales on account, 70% are expected to collected in the month of the sale, 25% in the month following the sale, and 5% in the next month.
In October the total cash collections are expected to be:
1. $300,000
2. $276,000
3. $216,000
4. $168,000
5. $ 60,000