2. Company A is expecting to sell 10,000 cases in July, 20,000 cases in August, and 30,000 in September of Year 2. Selling price per case is $30. All sales are on account. The sales are collected 70% in the month of sale and 30% in the month following sale. June sales totaled $200,000. Bad debts are negligible and can be ignored. Required: a) Prepare a sales budget. (pls. Disregard the 70% and 30%, just focused on the sales budget formula.)
2. Company A is expecting to sell 10,000 cases in July, 20,000 cases in August, and 30,000 in September of Year 2. Selling price per case is $30. All sales are on account. The sales are collected 70% in the month of sale and 30% in the month following sale. June sales totaled $200,000. Bad debts are negligible and can be ignored. Required: a) Prepare a sales budget. (pls. Disregard the 70% and 30%, just focused on the sales budget formula.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Transcribed Image Text:2. Company A is expecting to sell 10,000 cases in July, 20,000 cases in August, and
30,000 in September of Year 2. Selling price per case is $30. All sales are on account.
The sales are collected 70% in the month of sale and 30% in the month following
sale. June sales totaled $200,000. Bad debts are negligible and can be ignored.
Required: a) Prepare a sales budget. (pls. Disregard the 70% and 30%, just focused
on the sales budget formula.)
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