Expetn company has budgeted total sales for April and May at $200,000 and $250,000 respectively. sales are 68%credit, of which 18% is collected in the month of the sale and rest collected following month. what are the budgeted cash collection from sales in May?
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.
Expetn company has budgeted total sales for April and May at $200,000 and $250,000 respectively. sales are 68%credit, of which 18% is collected in the month of the sale and rest collected following month. what are the budgeted cash collection from sales in May?
Cash Sales :— It is one of type of sale in which customer pays the amount to the supplier at the time of purchase of goods.
Credit Sales :— In this type of sale, customer does not pay the amount to supplier at the time of purchase of goods.
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