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All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 45% in the month
All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 45% in the month following sale, and rhe rest are collected in the second month following sale. Bad debts are negligible and should be ignored. The following are budget sales data for the company:
| January | February | March | April |
Total sales | $50,000 | $60,000 | $40,000 | $30,000 |
What is the amount of cash that should be collected in March?
$39,000 | ||
$37,000 | ||
$27,500 | ||
$51,000 |
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