The expected cash collections for August is closest to:

A) $912,640
B) $415,840
C) $496,800
D) $828,000

To calculate expected cash collections, we need to take the sales for the month and apply the collection pattern to it. The collection pattern for July sales tells us that 20% of the sales will be collected in the same month, 50% in the following month and the remaining 30% in the second following month.

So, expected cash collections for August will be:
20% of July sales + 50% of June sales + 30% of May sales

= ( $1,000,000 x 20%) + ($800,000 x 50%) + ($400,000 x 30%)

= $200,000 + $400,000 + $120,000

= $720,000

Therefore, the closest option is A) $912,640.

The expected cash collections for August are computed as follows: