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Duluth Company is preparing its cash budget for December. The following information is available concerning its accounts receivable:

  • Estimated credit sales for December $ 300,000
  • Actual credit sales for November $ 225,000
  • Estimated collections in December for credit sales in December 25 %
  • Estimated collections in December for credit sales in November 70 %
  • Estimated collections in December for credit sales prior to November $ 24,000
  • Estimated write-offs in December for uncollectible credit sales $ 12,000
  • Estimated provision for bad debts in December for credit sales in December $ 10,500

Required:
What is the estimated amount of cash receipts from accounts receivable collections in December?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9972571

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