Answered step by step
Verified Expert Solution
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 | 30 | % |
Percent of prior months sales collected this month | 55 | |
Percent of sales two months prior to current month collected this month | 10 | |
Percent of sales three months prior to current month collected this month | 3 | |
The remaining 2 percent is not collected and is written off as bad debts. Credit sales to date are as follows.
Septemberestimated | $ | 170,000 |
August | 153,000 | |
July | 130,000 | |
June | 155,000 | |
Required:
What are the estimated cash receipts from accounts receivable collections in September?
Estimated cash receipts:
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