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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 | 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?
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