Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $235,000, $314,000, and $400,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. The cash collections expected in October are a.$296,225 b.$269,840 c.$285,640 d.$222,840

Total Cash= $296,225

Explanation:

Giving the following information:

Sales:

September= $235,000

October= $314,000

The company expects to sell 25% of its merchandise for cash.

Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale.

Cash collection for October:

Sales in cash= (314,000*0.25)= 78,500

Sales in account:

From September= (235,000*0.75)*0.3= 52,875

From October= (314,000*0.75)*0.70= 164,850

Total Cash= $296,225

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