Aspire Corp is preparing its cash budget for the month of June. The company estimated credit sales for June at $250,000. Actual credit sales for May were $180,000. Estimated collections in June for credit sales in June are 25%. Estimated collections in June for credit sales in May are 60%. Estimated collections in June for credit sales prior to May are $15,000. Estimated write-offs in June for uncollectible credit sales are $10,000. The estimated provision for bad debts in June for credit sales in June is $9,000. What are the estimated cash receipts from accounts receivable collections in June?

Aspire Corp is preparing its cash budget for the month of June. The company estimated credit sales for June at $250,000. Actual credit sales for May were $180,000. Estimated collections in June for credit sales in June are 25%. Estimated collections in June for credit sales in May are 60%. Estimated collections in June for credit sales prior to May are $15,000. Estimated write-offs in June for uncollectible credit sales are $10,000. The estimated provision for bad debts in June for credit sales in June is $9,000. What are the estimated cash receipts from accounts receivable collections in June?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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