Question
Budgeted Cash Receipts The Fresh Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable:
Budgeted Cash Receipts
The Fresh Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable:
Estimated credit sales for May..............................................................$200,000
Actual credit sales for April....................................................................$150,000
Estimated collections in May for credit sales in May.............................$20%
Estimated collections in May for credit sales in April.............................70%
Estimated collections in May for credit sales prior to April.....................$12,000
Estimated write-offs in May for uncollectable credit sales......................$8,000
Estimated provision for bad debts in May for credit sales in May...........$7,000
Compute the estimated cash receipts from accounts receivable collections in May.
A detailed walk-through on how to calculate the required answer would be super helpful! Not sure where to start, and we can't use computer programs like Excel so a traditional means of solving would be much appreciated.
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