Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, 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

Question

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, 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

Quizplus · Accepted Answer

To calculate the cash collections expected in October, we need to consider both the cash sales for October and the collections from sales made on account in September and October. For October:- Cash sales (25% of $320,000): $80,000- Sales on account collected from October sales (70% of 75% of $320,000): $168,000- Sales on account collected from September sales (30% of 75% of $250,000): $56,250Adding these amounts gives us the total expected cash collections for October: $80,000 + $168,000 + $56,250 = $304,250.

Dove Corporation Began Its Operations on September 1 of the Current