Downstairs Company Has the Following Sales Budget for the Last

Multiple Choice

Downstairs Company has the following sales budget for the last six months of 2010:
$\begin{array}{ll}\text { July } & \$ 100,000 \\\text { August } & 80,000 \\\text { September } & 110,000 \\\text { October } & 80,000 \\\text { November } & 100,000 \\\text { December } & 94,000\end{array}$
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 uncollectible
What are the expected cash collections of sales in October?

A) $79,500
B) $85,900
C) $92,400
D) $99,500