Evans Company's cash sales are normally 60% of total sales. Anticipated sales for April and May are $588,000 and $550,000 respectively of the credit sales. 10% are collected in the same month as the sale, 70% are collected during the first month after the sale, and the remaining 20% are collected in the second month. Determine the accounts receivable balance that should be reported on Evan's budgeted balance sheet as of May 31.
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.
![Evans Company's cash sales are normally 60% of total sales. Anticipated sales for
April and May are $588,000 and $550,000 respectively of the credit sales. 10% are
collected in the same month as the sale, 70% are collected during the first month
after the sale, and the remaining 20% are collected in the second month. Determine
the accounts receivable balance that should be reported on Evan's budgeted balance
sheet as of May 31.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36498783-586d-498e-b738-2d2ae841a800%2Fb53ee6c8-c0cc-47dd-b525-640a6b1f27f7%2Flvow01_processed.jpeg&w=3840&q=75)
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