Question - In preparing its budget for July, Wade Inc. has the following information available:
Accounts Receivable at June 30 $750,000
Estimated credit sales for July 900,000
Estimated collections in July for credit sales in July and prior months 660,000
Estimated write-offs in July for uncollectible credit sales 27,000
Estimated provision for uncollectible accounts for credit sales in July 20,000
a. What is the projected balance of Accounts Receivable at July 31?
b. Which of these amounts (if any) will affect the cash budget?
c. Which of these amounts (if any) will affect the budgeted income statement for July?