I have the answer for the problem below but need help with the following questions:

• Why do we use November sales at 25% since the "remaining sales of 25% are collected in the second month following the sale". Wouldn't the second month of sale be October?
• I understand why we use 80% for December since 20% of sales are collected in the month of sale, but why do we use 25% in the second month following the sale instead of 75%?
• Why don't we include "55% in the month following the sale" to compute the problem?

Problem:

HeatCorporation has budgeted for the following sales:

July $447,600

August $582,600

September $616,300

October $891,300

November $743,000

December $703,000

Sales are collected as follows: 20% in the month of sale; 55% in the month following the sale; and the remaining 25% in the second month following the sale. In Heat's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?

December sales accounts receivables ($703,000 x 80%)$562,400

November sales accounts receivables ($743,000 x 25%) + 185,750

Total accounts receivable $748,150