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This is amount of total cash collected in December. See the correct answer for a complete explanation.
This is amount of cash collected in October from October sales. See the correct answer for a complete explanation.
This amount does not include cash collected in October from October's sales but only the collections from July, August and September sales collected in October.
Cash collections in October represent cash collections from sales made in October as well as collections from sales made in previous months according to the cash collection schedule, as follows: October sales × .70 = $90,000 × .70 = $63,000 September sales × .15 = $80,000 × .15 = $12,000 August sales × .10 = $70,000 × .10 = $7,000 July sales × .04 = $60,000 × .04 = $2,400 Total collections = $63,000 + $12,000 + $7,000 + $2,400 = $84,400