Elordi Engineers Corp. has the following budgeted sales data (in dollars): June July August September Credit Sales 290,000 270,000 260,000 290,000 Cash Sales 70,000 60,000 80,000 90,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. 1. What would the budgeted cash receipts during September be? Round your answer to the nearest whole number. 2. What would the budgeted accounts receivable balance be at the end of July? Round your answer to the nearest whole number.
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.
Elordi Engineers Corp. has the following budgeted sales data (in dollars):
| June | July | August | September | |
| Credit Sales | 290,000 | 270,000 | 260,000 | 290,000 |
| Cash Sales | 70,000 | 60,000 | 80,000 | 90,000 |
The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no
1. What would the budgeted cash receipts during September be?
Round your answer to the nearest whole number.
2. What would the budgeted
Round your answer to the nearest whole number.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
