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Dooley Company has prepared the following sales budget: Month Cash Sales Credit Sales September $123,000 $210,000 October 140,000 200,000 November 167,000 260,000 December 189,000 190,000
Dooley Company has prepared the following sales budget: Month Cash Sales Credit Sales September $123,000 $210,000 October 140,000 200,000 November 167,000 260,000 December 189,000 190,000 Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What are the estimated cash collections in October from October sales? A) $125,000 B) $140,000 C) $230,000 D) $240,000
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