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Sport Company is preparing a cash budget for the month of July. The following information on accounts receivable collections is available from Sport's past collection
Sport Company is preparing a cash budget for the month of July. The following information on accounts receivable collections is available from Sport's past collection experience: Percent of current month's sales collected this month 15% Percent of prior month's sales collected this month 72% 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 3% The remaining 4% are not collected and are written off as bad debts. Credit sales are as follows: July-estimated $150,000 June $135,000 May $120,000 April $145,000 What are the estimated accounts receivable collections for July? O $125,250 O None of the answers are correct. O $133,250 O $131,250 $131.250 $137.250
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