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 56 Percent of sales two months prior to current month collected this month 12 Percent of sales three months prior to current month collected this month 5
The remaining 2 percent is not collected and is written off as bad debts. Credit sales to date are as follows.
Septemberestimated $ 150,000 August 135,000 July 110,000 June 131,000
Required:
What are the estimated cash receipts from accounts receivable collections in September?
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 | 56 | |
| Percent of sales two months prior to current month collected this month | 12 | |
| Percent of sales three months prior to current month collected this month | 5 | |
The remaining 2 percent is not collected and is written off as bad debts. Credit sales to date are as follows.
| Septemberestimated | $ | 150,000 |
| August | 135,000 | |
| July | 110,000 | |
| June | 131,000 | |
Required:
What are the estimated cash receipts from accounts receivable collections in September?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
