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Exercise 13-40(Algo) Estimate Cash Collections (LO 13-4) All sales at Alaska Company are on...

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Accounting

Exercise 13-40(Algo) Estimate Cash Collections (LO 13-4)
All sales at Alaska Company are on credit. The company is preparing a cash budget for November. The following information on accounts receivable collections is available from customer payment history:
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
30%
55
10
3
The remaining 2 percent is not collected and is written off as bad debts. Sales to date are as follows:
\table[[November (estimated),$340,000
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