A. This is the budgeted collections for the periods from August through October. See the correct answer for a complete explanation.

B. This is the total sales for the third calendar quarter, not the cash collected.

C. The third calendar quarter is represented by July, August and September. In each of these months DeBerg's collects 50% of that month's sales plus 45% of the previous month's sales as follows:

July: ($140,000 × 50%) + ($120,00 × 45%) = $124,000

August: ($160,000 × 50%) + ($140,000 × 45%) = $143,000

September: ($150,000 * 50%) + ($160,000 × 45%) = $147,000

In total, collections will be $124,000 + $143,000 + $147,000 = $414,000.

This question can also be solved by assuming that in the third quarter, the company collect 95% of July and August sales plus 45% of June sales and 50% of September sales.

D. This is the amount of cash collected from sales made in the third calendar quarter.