Problem:
If the actual February 28 A/R balance was $12,000 and projected sales in March are $50,000, where 70% of sales are on credit, 60% of credit sales are collected in the month of the sale, and 40% are collected in the month after the sale,
Required:
Question 1: What is the projected A/R balance on the pro forma balance sheet for the end of March? Please provide step by step solution.