2. Sales & Accounts Receivable Budget Past collections experienced by BJS Company indicate that 60% of the sales billed in a month are collected during the month of sales, 30% are collected in the following month, and 10% are collected in the second following month. The following are the projected sales for next year: January February March April May P 480,000 P 420,000 P 500,000 P 550,000 P 600,000 REQUIRED: Determine the following: A) Budgeted collections during the month of March. B) Budgeted collections during the month of May. C) Projected accounts receivable balance on April 1. D) Projected accounts receivable balance on June 1.
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.
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Where is 60k coming from?
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