Estimate Cash Collections
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?