The Following Sales Budget Has Been Prepared Collections Are 50% in the Month of Sale, 40% in }

The following sales budget has been prepared: $\begin{array}{lll}\text { Month } & \text { Cash Sales } & \text { Credit } \text { Sales } \\\text { September } & \$ 123,000 & \$ 210,000 \\\text { October } & 125,000 & 180,000 \\\text { November } & 167,000 & 260,000 \\\text { December } & 189,000 & 190,000\end{array}$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale. No uncollectible accounts are anticipated. is the estimated cash collection in October from October sales

A) $295,000
B) $215,000
C) $125,000
D) None of these answers is correct.

Correct Answer:

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