Dove Corporation Began Its Operations on September 1 of the Current

Multiple Choice

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 30% in the month following the sale. The cash collections in October are:

A) $320,000
B) $248,000
C) $304,250
D) $382,500