38) Same information as before - you start your business on January 1st. Your sales are forecasted to be $125,000 for January, $140,000 for February, $160,000 in March and $165,000 in April. You expect to collect 60% of your sales in the month of the sale, 25% the following month, 10% two months later and 4% three months later. What total is the balance in your Allowance for Uncollectible Accounts at the end of April if you have not yet written off any accounts ?
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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