Budgeted sales in Allen Company over the next four months are given below: Budgeted Sales September $100,000 October $160,000 November December $180,000 $120,000 Twenty-five percent of the company's sales are for cash, and 75% are on account. Collections for sales on account follow a stable pattern a of a month's sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second m sale. The remainder is uncollectible. Given these data, what should be cash collections for December?
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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