Ferrari Industries is preparing its cash budget for the month of August. The company estimated credit sales for August at $320,000. Actual credit sales for July were $240,000. Estimated collections in August for credit sales in August are 30%. Estimated collections in August for credit sales in July are 55%. Estimated collections in August for credit sales prior to July are $22,000. Estimated write-offs in August for uncollectible credit sales are $14,000. The estimated provision for bad debts in August for credit sales in August is $12,000. What are the estimated cash receipts from accounts receivable collections in August?

Ferrari Industries is preparing its cash budget for the month of August. The company estimated credit sales for August at $320,000. Actual credit sales for July were $240,000. Estimated collections in August for credit sales in August are 30%. Estimated collections in August for credit sales in July are 55%. Estimated collections in August for credit sales prior to July are $22,000. Estimated write-offs in August for uncollectible credit sales are $14,000. The estimated provision for bad debts in August for credit sales in August is $12,000. What are the estimated cash receipts from accounts receivable collections in August?

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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Ferrari Industries is preparing its cash budget for the month of August. The company estimated credit sales for August at $320,000. Actual credit sales for July were $240,000. Estimated collections in August for credit sales in August are 30%. Estimated collections in August for credit sales in July are 55%. Estimated collections in August for credit sales prior to July are $22,000. Estimated write-offs in August for uncollectible credit sales are $14,000. The estimated provision for bad debts in August for credit sales in August is $12,000. What are the estimated cash receipts from accounts receivable collections in August?