Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following the sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are:
January February March April
Budgeted Sales $200,000 $300,000 $350,000 $250,000
Collections for March= 20%*350000+70%*300000+6%*200000
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This provides the steps to calculate the Collections for March