Answer:
Hence, The total cash receipts collected during March will be $17,800
Explanation:
The computation of total cash receipts during march month is shown below:
= March cash sale + February credit sale + March credit sale
20% of march sale is cash sale
80% of march sale is credit sale
The credit sale of march month :
February sale = 80% × 70% of February sale
March credit sale = 80% × 30% of march sale
where,
Cash sale = $15,000 × 20 = $3,000
February credit sale = 80% × $20,000 × 70% = $11,200
March credit sale = 80% × $15,000 × 30% = $3,600
Now,
Put the above values in the given question which is equals to
= $3,000 + $11,200 + $3,600
= $17,800
Hence, The total cash receipts collected during March will be $17,800
