Joy’s Jewelry operates a mail-order business that sells jewelry designed for special occasions. It had sales of $300,000 in February. Because Joy’s Jewelry is in the mail-order business, all sales are made on account. The company expects a 25 percent drop in sales for March. The balance in the Accounts Receivable account on February 28 was $50,000 and is budgeted to be $35,000 as of March 31.

Requirements:

1. Calculate the expected cash collections from accounts receivable during March for Joy’s Jewelry.
2. Discuss the seasonal factors that might influence the sales drop in March for Joy’s Jewelry.