The Danser Company expects to have sales of $30,000 in January, $33,000 in February, and $38,000 in March. If 20 percent of sales are for cash, 40 percent are credit sales paid in the month following the sale, and 40 percent are credit sales paid 2 months following the sale, the cash receipts from the sales in March are:

Question

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Cash receipts in March include 20% of March sales ($7,600), 40% of February sales ($13,200), and 40% of January sales ($12,000), totaling $32,800.

The Danser Company Expects to Have Sales of $30,000 in January