The Kansas Company is preparing a cash budget for the month of July. The following information on accounts receivable collections is available from Kansas' past collection experience: 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% are not collected and are written off as bad debts. Credit sales to date are as follows: July (estimated) June May April What are the estimated collections in July? Multiple Choice O O $143,270 $130,750 $137,010 $ 156,000 $ 141,000 $ 126,000 $ 151,000 $139,100 15% 72% 6% 3%

The Kansas Company is preparing a cash budget for the month of July. The following information on accounts receivable collections is available from Kansas' past collection experience: 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% are not collected and are written off as bad debts. Credit sales to date are as follows: July (estimated) June May April What are the estimated collections in July? Multiple Choice O O $143,270 $130,750 $137,010 $ 156,000 $ 141,000 $ 126,000 $ 151,000 $139,100 15% 72% 6% 3%

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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