Let's practice calculating expected cash collections with the following example. ABC Company's budgeted sales are as follows:
January: $200,000
February: $220,000
March: $270,000
ABC's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following the sale, and 36% in the second month following the sale; 4% are uncollectible. What are the expected collections from customers in March?