**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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The Overland Company is preparing its cash budget for the month of June. The following information is available concerning its accounts receivable: $304,000 229,000 Estimated credit sales for June Actual credit sales for May Estimated collections in June for credit sales in June Estimated collections in June for credit sales in May Estimated collections in June for credit sales prior to May 25% 65% $ 22,000 16,000 14,000 Estimated write-offs in June for uncollectible credit sales Estimated provision for bad debts in June for credit sales in June What are the estimated cash receipts from accounts receivable collections in June?
The following data are from the budget of Ritewell Publishers. Half the company's sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $140, and total sales in January were $290. TT February March $ 420 April Total sales $ 440 $ 400 125 135 115 Cash purchases Credit purchases Labor and administrative purchases Taxes, interest, and dividends Capital expenditures 95 85 95 85 85 85 65 65 65 210 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.) February March Aprit Sources of cash Collections on current sales Collections on amounts receivable Total sources of cash 0 $ Uses of cash Payments of accounts payable Cash purchases o search
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