Question:  "We need guidance on how much spending money to give our daughter...  ...basically, the spending money we give her is for groceries and entertainment."

Answer:   The first thing I would suggest is to read my essay on college spending money.  Not all of it is applicable to your situation, but I think it gives you a good start.

Since this is an inexact science, I would suggest you meet (even if only by telephone) and talk about what's going to happen.  I think you should start with a figure that is a little less than what you actually think she'll need (no matter what, she'll use whatever you give her, so you'll want to start low and go up if necessary).

Seth Bykofsky, "The College Whisperer" of Long Island, NY, does much the same as College Answer Guy (and does it well)!

Through a group I'm in for college counselors on LinkedIn, I became aware of Seth as The College Whisperer, and have really enjoyed reading his blog