A company has the following budgeted sales:

July $200,000

August $300,000

September $250,000

20% of the sales are for cash, and 80% are on credit. 25% of the credit sales are collected in the month of sale, and 75% are collected the next month.

What are the total expected cash receipts during September?

$262,500

$250,000

$275,000

$287,500

(Please show any working out and formuals)