Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $69,000 and $72,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale and the remaining 55% in the following month. What amount of accounts receivable would the company report in its balance sheet at the end of the second month? Multiple Choice $70,350 $24,750 $39,600 $31,050
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.
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $69,000 and $72,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale and the remaining 55% in the following month. What amount of
-
$70,350
-
$24,750
-
$39,600
-
$31,050
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
