Oriole Enterprises reports all its sales on credit, and pays operating costs in the month incurred. Estimated amounts for the months ofJune through October are:August September OctoberJuly$272800 $290400 $264000 $246400 $228800$79200JuneBudgeted salesBudgeted purchases $126720 $105600 $112640O $279840.O $256080.O $158400.O. $274560.$116160Customer amounts on account are collected 60% in the month of sale and 40% in the following month. Cost of goods sold is 45% ofsales. Oriole purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. How much cash isbudgeted to be received during August?

Budgeting involves estimating income and expenses over a given period. It is essentially a financial plan. We can assess whether we have adequate resources to continue operating by using budgeting. Typically, it is prepared for a year, after which the projected and actual results are compared. A budget, put simply, is an itemized summary of projected income and outlays for a specific time frame. It aids in deciding whether to manufacture or purchase. Computation of the budget to be received in AugustAmount received in August = ($264,000 x 60%) + ($290,400 x 40%) = $158,400 + $116,160 = $274,560 Final AnswerHence, the correct option is (d) $274,560Amount received during August is $274,560

Answered: Customer amounts on account are…

Business

Accounting

Customer amounts on account are collected 60% in the month of sale a sales. Oriole purchases and pays for merchandise 30% in the month of budgeted to be received during August?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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