Question

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $243,000, $300,000, and $430,000, 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:_______

Answer 1

Total= $129,675

Step-by-step explanation:

Giving the following information:

Budgeted sales:

September= 243,000

October= 300,000

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 for October:

Cash from October= 300,000*0.25= 75,000

Cash from September= (243,000*0.75)*0.30= 54,675

Total= $129,675