Acme Company's budgeted monthly sales for the first quarter are as follows: January February March $201,000 For its credit sales, Acme collects 40% in the month of the sale, 40% in the month following the sale, and 20% in the second month following the sale. The accounts receivable balance on January 1 is $81,000, of which $60,000 represents uncollected December sales and $21,000 represents uncollected November sales. What are the total budgeted cash collections during the month of January? $187,000 $100,000 Cash Sales $30,000 $35,000 $41,000 O $143,000 Credit Sales $130,000 $150,000 $110,000
Acme Company's budgeted monthly sales for the first quarter are as follows: January February March $201,000 For its credit sales, Acme collects 40% in the month of the sale, 40% in the month following the sale, and 20% in the second month following the sale. The accounts receivable balance on January 1 is $81,000, of which $60,000 represents uncollected December sales and $21,000 represents uncollected November sales. What are the total budgeted cash collections during the month of January? $187,000 $100,000 Cash Sales $30,000 $35,000 $41,000 O $143,000 Credit Sales $130,000 $150,000 $110,000
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.
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Transcribed Image Text:Acme Company's budgeted monthly sales for the first quarter are as follows:
January
February
March
$201,000
For its credit sales, Acme collects 40% in the month of the sale, 40% in the month
following the sale, and 20% in the second month following the sale. The accounts
receivable balance on January 1 is $81,000, of which $60,000 represents uncollected
December sales and $21,000 represents uncollected November sales. What are the total
budgeted cash collections during the month of January?
$187,000
$100,000
Cash Sales
$30,000
$35,000
$41,000
O $143,000
Credit Sales
$130,000
$150,000
$110,000
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