Diamond Company Has the Following Sales Budget for the Last

Multiple Choice

Diamond Company has the following sales budget for the last six months of 2010: 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 uncollectible
What is the expected cash collection of sales in October?

A) $58,500
B) $86,000
C) $92,400
D) $99,500