B. This answer is incorrect. See the correct answer for a complete explanation.

C. April, May and June are the months of the second quarter. The projected cash collection in the second quarter during the second quarter are:

70% of these three months' estimated credit sales,

15% of credit sales made during April and May

10% of credit sales made during May

Mathematically, this looks as follows: 70% × ($120,000 + $100,000 +$90,000) + 15% × ($120,000 + $100,000) + 10% × $120,000. Doing the math, we get $217,000 + $33,000 + $12,000 = $262,000.

This problem can also be solved by calculating each month's cash collection and then adding the results together.

D. This is the amount of projected total sales in the second quarter, not the cash collection.