Estimate Cash Collections Duluth Company is preparing its cash budget for December. The following information is available concerning its accounts receivable:

Required What is the estimated amount of cash receipts from accounts receivable collections in December?

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Estimated credit sales for December Actual credit sales for November Estimated collections in December for credit sales in December $100,000 75,000 Estimated collections in December for credit sales in November Estimated collections in December for credit sales prior to November Estimated write-offs in December for uncollectible credit sales Estimated provision for bad debts in December for credit sales in December 25% 70% $8,000 $4,000 $3,500