Grove Company has budgeted the following credit sales for the last six months of the current year.

GROVE COMPANY

BUDGETED CREDIT SALES

FOR LAST SIX MONTHS OF CURRENT YEAR

July $ $300,000$ October $ $500,000$

August $350,000$ November $450,000$

September $400,000$ December $600,000$

Based on previous experience, the company collects its credit sales in the following manner: $50\%$ in the month of sale, $30\%$ in the month following sale, and $20\%$ in the second month following the sale.

What are the company's estimated cash collections on credit sales for the month of October?

Question $11$ options:

$$395,000.$

$$365,000.$

$$440,000.$

$$505,000.$