A company's history indicates that 20% of its sales are for cash and the remaining 80% are on credit. Collections on credit sales are 30% in the month of the sale and 70% the following month. Projected sales for January, February, and March are $75,000, $92,000 and $60,000, respectively. The March expected cash receipts are $77,920.

To calculate the expected cash receipts in March, we need to first calculate the total credit sales made in January, February, and March.

Total credit sales = 80% x ($75,000 + $92,000 + $60,000) = $174,400

Collections on credit sales in January = 30% x ($75,000 x 80%) = $18,000
Collections on credit sales in February = 70% x ($92,000 x 80%) = $51,520
Collections on credit sales in March = expected cash receipts = $77,920

Thus, the total collections for January, February, and March would be:

Total collections = $18,000 + $51,520 + $77,920 = $147,440

Since this is equal to the total credit sales made over the three months, we know that our calculations are correct. Therefore, the answer is A) True.