Duluth Company is preparing its cash budget for December The following information is available concerning its accounts receivable Estimated credit sales for December $300,000 Actual credit sales for November $225,000 Estimated collections in December for credit sales in December 25 Estimated colle...

Duluth Company Schedule of Cash Collections For the ...

Duluth Company is preparing its cash budget for December. The following information is available concerning its accounts

Question:

Duluth Company is preparing its for December. The following information is available concerning its credit sales for December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000
Actual credit sales for November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$225,000
Estimated collections in December for credit sales in December. . . . . . . . . . 25%
Estimated collections in December for credit sales in November. . . . . . . . . . 70%
Estimated collections in December for credit sales prior to November . . . . . $ 24,000
Estimated write-offs in December for uncollectible credit sales . . . . . . . . . . . $ 12,000
Estimated provision for bad debts in December for credit sales in December..$ 10,500
Required
What is the estimated amount of cash receipts from collections in December?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...