Dax, Inc., collects its accounts receivable as follows: 30% in the month ofsale, 60% in the next month, and 8% in the second month after the sale; 2%are uncollectible. Budgeted sales for the next four months are March, $16,000; April, $22,000; May, $19,000; and June, $23,000. Budgeted collections forJune area. $20,060.b. $20,380.c. $21,260.d. $21,380.
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.
Dax, Inc., collects its
sale, 60% in the next month, and 8% in the second month after the sale; 2%
are uncollectible. Budgeted sales for the next four months are March, $16,000; April, $22,000; May, $19,000; and June, $23,000. Budgeted collections for
June are
a. $20,060.
b. $20,380.
c. $21,260.
d. $21,380.
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