How to work out this Accounting Question on Cash Collections?

Your budgeted sales are Jan $30,000, Feb $50,000 and Mar $70,000. Your cash collected from sales is 20% in the month of sales and 80% in the month following sale. Calculate the total amount of cash collected for March.





A $54,000


B $40,000


C None of the aboveHow to work out this Accounting Question on Cash Collections?
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$70,000x.2 = $14,000 (March sales collected in March)


+ $50,000x.9 = $40,000 (Feb sales collected in March)


= $54,000