Dooley Company Has Prepared the Following Sales Budget Collections of Credit Sales Are 50% in the Month of Month

Multiple Choice

Dooley Company has prepared the following sales budget:
$\begin{array}{lll}\text { Month }&\text { Cash Sales }&\text { Credit Sales }\\\text { September } & \$ 123,000 & \$ 210,000 \\\text { October } & 140,000 & 200,000 \\\text { November } & 167,000 & 260,000 \\\text { December } & 189,000 & 190,000\end{array}$
Collections of credit sales are 50% in the month of sale,40% in the month following sale,and 10% two months following sale.No uncollectible accounts are expected.What are the estimated cash collections in October from October sales?

A) $125,000
B) $140,000
C) $230,000
D) $240,000