Question
AlCo's sales are all on account to customers. The company's collection pattern is: 70% collected in the month of sale; 25% collected in the month
AlCo's sales are all on account to customers. The company's collection pattern is: 70% collected in the month of sale; 25% collected in the month following sale; and the remaining 5% is uncollectible. The accounts receivable balance on March 31 was $30,000, all of which was collectible. The cash balance at the beginning of April was $21,000. Forecasted sales information follows:
Forecasted sales for January $110,000
Forecasted sales for February 130,000
Forecasted sales for March 90,000
Forecasted sales for April 100,000
Forecasted sales for May 120,000
Determine the amount of cash to be collected during the month of March.
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