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 as follows. 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started