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Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $239,000, $316,000, and
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $239,000, $316,000, and $408,000, 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.$272,560
b.$298,675
c.$224,760
d.$287,960
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