Arcadia Concepts had the following projected sales (in units) for one of the products it manufactures:

January

6,200 units

February

7,000 units

March

6,600 units

The finished units sell for $25 each with all sales being on credit.In prior periods management has found that 25% of sales are collected in the month of sale, 60% are collected in the month following the sale and the final 15% are collected two months following the sale.Bad debts are negligible and can be ignored.

a)Create schedule of cash collections showing how much cash will be collected in March.

b)What will the accounts receivable balance be on March 31?

Arcadia Concepts had the following projected sales (in units) for one of the products it manufactures: January 6,200 units February 7,000 units March 6,600 units The finished units sell for $25 each with all sales being on credit. In prior periods management has found that 25% of sales are collected in the month of sale, 60% are collected in the month following the sale and the final 15% are collected two months following the sale. Bad debts are negligible and can be ignored. Required: a) Prepare a schedule of cash collections showing how much cash will be collected in March. (5 marks) b ) What will the accounts receivable balance be on March 31? (2 marks)