Reference no: EM131788396

Problem

Lee Corporation is preparing its cash budget for the month of May. The following information is available regarding the company's accounts receivable: Estimated cash sales for May $ 9,000 Estimated sales on credit for May $ 26,000 Actual credit sales for April $ 19,500 Actual cash sales for April $ 7,200 Estimated collections in a month for that month's credit sales 30% Estimated collections in a month for credit sales in the previous month 65% Estimated collections in a month for uncollected sales from the two previous months or earlier 98% Uncollected sales from March $ 1,600 What are the estimated cash receipts for May, based on the above information?

a) $22,043
b) $29,475
c) $31,043
d) $38,243.