**Minot Corporation Cash Budget Preparation for August****Exercise 13-35 (Algo) Estimate Cash Collections (LO 13-5)**Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable:- **Estimated credit sales for August:** $80,000- **Actual credit sales for July:** $60,000- **Estimated collections in August for credit sales in August:** 25%- **Estimated collections in August for credit sales in July:** 70%- **Estimated collections in August for credit sales prior to July:** $6,000- **Estimated write-offs in August for uncollectible credit sales:** $4,000- **Estimated provision for bad debts in August for credit sales in August:** $2,700**Required:**What is the estimated amount of cash receipts from accounts receivable collections in August?**Solution:**- **Estimated cash receipts:** $71,000**Explanation:**This calculation includes proportions of the sales collected for both August and July, rest estimated from prior sales and deductions for bad debts and write-offs.

Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August Actual credit sales for July Estimated collections in August for credit saes in August Estimated collections in August for credit sales in July Estimated collections in August for credit sales prior to July Estimated write-offs in August for uncollectible credit sales Estimated provision for bad debts in August for credit sales in August $ 80, 000 $ 60, 000 25% 70% $ 6,000 $ 4,000 $ 2, 700 Required: What is the estimated amount of cash receipts from accounts receivable collections in August? Estimated cash receipts 2$ 71,000

Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August Actual credit sales for July Estimated collections in August for credit saes in August Estimated collections in August for credit sales in July Estimated collections in August for credit sales prior to July Estimated write-offs in August for uncollectible credit sales Estimated provision for bad debts in August for credit sales in August $ 80, 000 $ 60, 000 25% 70% $ 6,000 $ 4,000 $ 2, 700 Required: What is the estimated amount of cash receipts from accounts receivable collections in August? Estimated cash receipts 2$ 71,000

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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