Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 as follows.

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Market Management

Authors: David A. Aaker

4th Edition

0471309567, 9780471309567

More Books

Students also viewed these Accounting questions

Question

Explain the concept of using core competency design.

Answered: 1 week ago

Question

Homework: Chapter 5 Homework Save Score: 0 of 1 pt

Answered: 1 week ago