Question

Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable:Estimated credit sales for August $ 180,000 Actual credit sales for July $ 135,000 Estimated collections in August for credit sales in August 20 %Estimated collections in August for credit sales in July 75 %Estimated collections in August for credit sales prior to July $ 14,400 Estimated write-offs in August for uncollectible credit sales $ 7,200 Estimated provision for bad debts in August for credit sales in August $ 6,300 Required:What is the estimated amount of cash receipts from accounts receivable collections in August?

Answer 1

$151,650

Step-by-step explanation:

August Sales Collection $180,000*20%=$36,000

July Sales Collection $135,000*75%= $101,250

Collection of sales prior to July = $14,400

Total Cash receipts in August =$151,650