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Answer (D) is correct . November credit sales were $240,000. Of this amount, $12,000 ($240,000 × 5%) will likely be written off. Given that 60% of the remaining credit sales are collected in the month of sale, 40% will be collected in the following month. Thus, December’s expected cash collections are $91,200 [($240,000 – $12,000) × 40%].

Answer (A) is incorrect because The amount of $84,000 is 35% of November credit sales, which incorrectly assumes uncollectible sales are 5%, cash collected in the month of sale is 60%, and cash collected in the month following the sale is 35%.
Answer (B) is incorrect because The budgeted cash collections in November from November sales is $136,800.
Answer (C) is incorrect because The total expected to be collected in November and December from November sales is $228,000.