Ruby Corporation Has the Following Sales Budget for the Last

Ruby Corporation has the following sales budget for the last six months of 20X0: $$\begin{array} { l l l l } \text { July } & \$ 100,000 & \text { Octob er } & \$ 90,000 \\\text { August } & 80,000 & \text { N ovemb er } & 100,000 \\\text { September } & 110,000 & \text { D ecember } & 94,000\end{array}$$ Historically, the cash collection of sales has been as follows: 65% of sales collected in month of sale 25% of sales collected in month following sale
8% of sales collected in second month following sale 2% of sales are uncollectible
Is the expected cash collection in October.

A) $92,400
B) $99,500
C) $58,500
D) None of these answers is correct.

Correct Answer:

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