# Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are \$247,000, \$303,000, and \$413,000, 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 and 30% in the month following the sale.The cash collections expected in October area.\$268,480b.\$219,080c.\$290,400d.\$279,680

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Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are \$247,000, \$303,000, and \$413,000, 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 and 30% in the month following the sale.

The cash collections expected in October are

a.\$268,480
b.\$219,080
c.\$290,400
d.\$279,680
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Step 1

Cash Collection

Cash collection are the combination of current month’s cash sales and the credit sales of the previous month. Cash collection is a function of account receivable. Cash collection is the recovery of cash from a business or individual with which invoice are issued.

Step 2

Calculation of cash collection expected in the...

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