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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 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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