Exercise 13-40 (Algo) Estimate Cash Collections (LO 13-4) All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: Percent of current month's sales collected this month Percent of prior month's sales collected this month. Percent of sales two months prior to current month collected this month Percent of sales three months prior to current month collected this month. The remaining 4 percent is not collected and is written off as bad debts. Sales to date are as follows: November (estimated) October September August $ 280,000 600,000 250,000 670,000 Required: What are the estimated cash receipts from accounts receivable collections in November? Estimated cash receipts 25% 60 8 3 K

Exercise 13-40 (Algo) Estimate Cash Collections (LO 13-4) All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history: Percent of current month's sales collected this month Percent of prior month's sales collected this month. Percent of sales two months prior to current month collected this month Percent of sales three months prior to current month collected this month. The remaining 4 percent is not collected and is written off as bad debts. Sales to date are as follows: November (estimated) October September August $ 280,000 600,000 250,000 670,000 Required: What are the estimated cash receipts from accounts receivable collections in November? Estimated cash receipts 25% 60 8 3 K

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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