(Budgeted income, cash, and accounts receivable) In preparing its budget for July 1997, Management Consultants Company has the following accounts receivable information available:

a. What is the projected balance of Accounts Receivable at July 31, 1997?

b. Which of the above amounts (if any) will affect the cash budget?

c. Which of the above amounts (if any) will affect the pro forma income state¬ ment for July?
(CPA adapted)LO1

Transcribed Image Text:

Accounts Receivable at June 30 Estimated credit sales for July Estimated collections in July for credit sales in July and prior months Estimated write-offs in July for uncollectible credit sales Estimated provision for uncollectible accounts for credit sales in July $700,000 800,000 640,000 32,000 24,000