Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience.         Percent of current month’s sales collected this month 20 % Percent of prior month’s sales collected this month 57   Percent of sales two months prior to current month collected this month 12   Percent of sales three months prior to current month collected this month 8     The remaining 3 percent is not collected and is written off as bad debts. Credit sales to date are as follows.         September—estimated $ 280,000 August   252,000 July   240,000 June   286,000   Required: What are the estimated cash receipts from accounts receivable collections in September?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Ewing Company is preparing a cash budget for September. The following information on accounts receivable collections is available from past collection experience.
 

     
Percent of current month’s sales collected this month 20 %
Percent of prior month’s sales collected this month 57  
Percent of sales two months prior to current month collected this month 12  
Percent of sales three months prior to current month collected this month 8  
 


The remaining 3 percent is not collected and is written off as bad debts. Credit sales to date are as follows.
 

     
September—estimated $ 280,000
August   252,000
July   240,000
June   286,000
 


Required:

What are the estimated cash receipts from accounts receivable collections in September?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education