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13-35 Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August $
13-35
Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable:
Estimated credit sales for August | $ | 150,000 | |
Actual credit sales for July | $ | 115,000 | |
Estimated collections in August for credit sales in August | 25 | % | |
Estimated collections in August for credit sales in July | 70 | % | |
Estimated collections in August for credit sales prior to July | $ | 13,000 | |
Estimated write-offs in August for uncollectible credit sales | $ | 5,000 | |
Estimated provision for bad debts in August for credit sales in August | $ | 5,600 | |
Required:
What is the estimated amount of cash receipts from accounts receivable collections in August?
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