To calculate how much cash will be collected in March for My Aunt's Closet Store, we need to determine the percentage of accounts receivable that will be collected in that month.
Based on the information provided, 60% of the accounts receivable are collected in the month of sale.
Therefore, if the total sales in March were given, we could calculate the amount of cash collected in that month.
To determine how much cash will be collected in March, we need to calculate the percentage of accounts receivable that will be collected in that month.
According to the information given, 60% of accounts receivable are collected in the month of sale and 35% are collected in the month after the sale.
Therefore, for the sales made in March, 60% of the accounts receivable will be collected in March.
Let's say the total sales made in March were $10,000. Since 60% of accounts receivable are collected in the month of sale, $6,000 (60% of $10,000) will be collected in March.