Problem E

MNO Corporation has a P35,000 balance of account receivable at the beginning of its budget period. It has

budgeted P160,000 credit sales and expects to collect 70% of these during the budget period.

13. What is the ending balance of accounts receivable assuming that all but 10% of the beginning balance is

collected during the budget period.

Problem F

The following information was extracted from the May Cash Budget of Hair Stars, a groom pad for men

and women:

Budget of Hair Stars, a groom pad for men and women:

Excess of cash available over disbursements P 800

Cash balance, May 1 10,100

Total cash disbursement for May 32,500

The business can only borrow money in round figures of P1,000 amounts.

14. If the business is required to maintain a minimum cash balance of P10,000, how much money should be

borrowed in May?

Problem G

In preparing its budget for July, 1997, Joy Company has the following accounts receivable information

available:

Accounts receivable at June 30, 19x7 P350,000

Estimated credit sales for July P400,000

Estimated collections in July for credit sales in July and prior months P320,000

Estimated write-offs in July for uncollectible credit sales P 16,000

Estimated provision for doubtful accounts for credit sales in July P 12,000

15. What is the projected balance of accounts receivable at July 31, 19x7?