Budget cash receipts for the months of January, February, and March. Budgeted sales, all on account: November $ 65,000 December 60,000 January 82,000 February 70,000 March 90,000 Collection of accounts receivable experience: Of a given month’s sales, 60% are collected in the month of sale less 2% cash discount. 30% of a given month’s sales are collected in the month following the sale. 10% are collected in the second month following the sale. Ignore uncollectible accounts (immaterial). JANUARY FEBRUARY MARC
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.
Budget cash receipts for the months of January, February, and March. Budgeted sales, all on account:
November $ 65,000
December 60,000
January 82,000
February 70,000
March 90,000
Collection of
- Of a given month’s sales, 60% are collected in the month of sale less 2% cash discount.
- 30% of a given month’s sales are collected in the month following the sale.
- 10% are collected in the second month following the sale.
- Ignore uncollectible accounts (immaterial).
JANUARY FEBRUARY MARCH
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