FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Alpha Company is preparing its cash budget for the month of May.
The company estimated credit sales for May at $200,000. Actual
credit sales for April were $150,000. Estimated collections in May
for credit sales in May are 20%. Estimated collections in May for
credit sales in April are 70%. Estimated Collections in May for
credit sales prior to April are $12,000. Estimated write-offs in May
for uncollectible credit sales are $8,000. The estimated provision
for bad debts in May for credit sales in May is $7,000.
What are the estimated cash receipts from accounts receivable
collections in May?
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Transcribed Image Text:Alpha Company is preparing its cash budget for the month of May. The company estimated credit sales for May at $200,000. Actual credit sales for April were $150,000. Estimated collections in May for credit sales in May are 20%. Estimated collections in May for credit sales in April are 70%. Estimated Collections in May for credit sales prior to April are $12,000. Estimated write-offs in May for uncollectible credit sales are $8,000. The estimated provision for bad debts in May for credit sales in May is $7,000. What are the estimated cash receipts from accounts receivable collections in May?
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