:00 QS 20-22 (Algo) Computing budgeted accounts receivable LO P2 Kingston budgets total sales for June and July of $390,000 and $448,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 20% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. Sales month June July Total Total Sales $ Credit Sales 390,000 $ 130,500 448,000 136,500 As of July 31 Percent Uncollected Amount Uncollected 15% $ 80% 20,475
:00 QS 20-22 (Algo) Computing budgeted accounts receivable LO P2 Kingston budgets total sales for June and July of $390,000 and $448,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 20% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. Sales month June July Total Total Sales $ Credit Sales 390,000 $ 130,500 448,000 136,500 As of July 31 Percent Uncollected Amount Uncollected 15% $ 80% 20,475
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Kk.81.
Transcribed Image Text:3:00
QS 20-22 (Algo) Computing budgeted accounts receivable LO P2
Kingston budgets total sales for June and July of $390,000 and $448,000, respectively. Cash sales are 60% of total sales. Of the
credit sales, 20% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 15% are
collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted
e sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.
Sales month
June
July
Total
Total Sales
Credit Sales
$ 390,000 $
448,000
138,500
136,500
As of July 31
Percent
Uncollected
15% $
80%
Amount
Uncollected
20,475
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