Answer:
The firm's budgeted collections for March is $64,000
Explanation:
For collecting the firm's budgeted collections for march, the computation is shown below:
30% are collected in the month of the sale :
= 30% of March sale
= 30 × $70,000
= $21,000
60% are collected in the first month after the sale :
It means the calculations based on February month
= 60% × $60,000
=$36,000
10% are collected in the second month after the sale:
It means the calculations based on January month
= 10% × $70,000
= $7,000
Now, add these three month sales which equals to
= $21,000 + $36,000 + $7,000
= $64,000
Hence, the firm's budgeted collections for March is $64,000
