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. Estimated provision for bad debts in May for credit sales in May are $7,000. What are the estimated cash receipts from accounts receivable collections in May?

$157,000

Explanation:

The calculation of estimated cash receipts from accounts receivable collections in May is shown below:-

Collections from sales of may = $200,000 × 20%

= $40,000  

Collections from sales of April = $150,000 × 70%

= $105,000

Collections from sales of prior period = $12,000    

Estimated Collections in May month = Collections from sales of may + Collections from sales of April + Collections from sales of prior period

= $40,000 + $105,000 + $12,000

= $157,000

So, for computing the estimated collection in may month we simply applied the above formula.

the correct option is c

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it