Question
Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August $ 260,000
Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable:
| Estimated credit sales for August | $ | 260,000 | |
| Actual credit sales for July | $ | 199,000 | |
| Estimated collections in August for credit sales in August | 25 | % | |
| Estimated collections in August for credit sales in July | 70 | % | |
| Estimated collections in August for credit sales prior to July | $ | 22,000 | |
| Estimated write-offs in August for uncollectible credit sales | $ | 8,000 | |
| Estimated provision for bad debts in August for credit sales in August | $ | 9,400 | |
Required:
What is the estimated amount of cash receipts from accounts receivable collections in August?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
18th Edition
9781119790976
