Question
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 25 % Percent of prior months sales collected this month 63 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 3 The remaining 3 percent is not collected and is written off as bad debts. Credit sales to date are: Septemberestimated $ 200,000 August 180,000 July 160,000 June 190,000 Required
: What are the estimated cash receipts from accounts receivable collections in September?
Estimate cash receipts=?
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