A partnership are preparing their cash budget for September with the following credit sales: June 42,460 July 45,640 August 47,980 September 49,480 Recent experience suggests that 60% pay in the month after sale, 25% in month 2, 12% in month 3 with 3% bad debt. Customers paying in the month after sale are entitled to a 2% discount. How much cash would be collected from credit sales in September? A £44,717 B £45,725 C £46,372 D £47,639 State that answer should be to the nearest £.
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.
A
sales:
June 42,460
July 45,640
August 47,980
September 49,480
Recent experience suggests that 60% pay in the month after sale, 25% in month 2,
12% in month 3 with 3%
Customers paying in the month after sale are entitled to a 2% discount.
How much cash would be collected from credit sales in September?
A £44,717
B £45,725
C £46,372
D £47,639
State that answer should be to the nearest £.
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