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Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience: Percent of current

Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience:

Percent of current months sales collected this month 20 %
Percent of prior months sales collected this month 61
Percent of sales two months prior to current month collected this month 6
Percent of sales three months prior to current month collected this month 8

The remaining 5 percent is not collected and is written off as bad debts. Credit sales to date are:

Septemberestimated $ 270,000
August 243,000
July 230,000
June 274,000

Required:

What are the estimated cash receipts from accounts receivable collections in September?

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