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Alpha Company is preparing its cash budget for the month of May. The company estimated credit sales for May at $200,000. Actual credit sales for April were $150,000. Estimated collections in May for credit sales in May are 20%. Estimated collections in May for credit sales in April are 70%. Estimated Collections in May for credit sales prior to April are $12,000. Estimated write-offs in May for uncollectible credit sales are $8,000. The estimated provision for bad debts in May for credit sales in May is $7,000. What are the estimated cash receipts from accounts receivable collections in May?

Alpha Company is preparing its cash budget for the month of May. The company estimated credit sales for May at $200,000. Actual credit sales for April were $150,000. Estimated collections in May for credit sales in May are 20%. Estimated collections in May for credit sales in April are 70%. Estimated Collections in May for credit sales prior to April are $12,000. Estimated write-offs in May for uncollectible credit sales are $8,000. The estimated provision for bad debts in May for credit sales in May is $7,000. What are the estimated cash receipts from accounts receivable collections in May?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpha Company is preparing its cash budget for the month of May. The company estimated credit sales for May at $200,000. Actual credit sales for April were $150,000. Estimated collections in May for credit sales in May are 20%. Estimated collections in May for credit sales in April are 70%. Estimated Collections in May for credit sales prior to April are $12,000. Estimated write-offs in May for uncollectible credit sales are $8,000. The estimated provision for bad debts in May for credit sales in May is $7,000. What are the estimated cash receipts from accounts receivable collections in May?
Transcribed Image Text:Alpha Company is preparing its cash budget for the month of May. The company estimated credit sales for May at $200,000. Actual credit sales for April were $150,000. Estimated collections in May for credit sales in May are 20%. Estimated collections in May for credit sales in April are 70%. Estimated Collections in May for credit sales prior to April are $12,000. Estimated write-offs in May for uncollectible credit sales are $8,000. The estimated provision for bad debts in May for credit sales in May is $7,000. What are the estimated cash receipts from accounts receivable collections in May?
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