Diamond Corporation Has the Following Sales Budget for the Last

question 44

Multiple Choice

Diamond Corporation has the following sales budget for the last six months of 20X0: $$\begin{array} { l r l r } \text { July } & \$ 100,000 & \text { October } & \$ 90,000 \\\text { August } & 80,000 & \text { November } & 100,000 \\\text { September } & 110,000 & \text { December } & 94,000\end{array}$$ 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 are uncollectible
_____ is the expected cash collection in October.

• A)$58,500
• B)$92,400
• C)$99,500
• D)None of these answers is correct