Find for: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Sales Recievable Balances as of the end of Cash Collections
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.
ABC Corporation is preparing its sales and receivable budget for the year 2022. Details are as follows:
The sales during the 4th quarter of 2021 is 30,000 units and the selling price per unit is P500 per unit. Units to be sold is
Of the sales per quarter, 55% are cash sales while the remaining credit sales. The credit sales are expected to be settled as
follows: 5/9 will be collected during month of sales, 3/9 will be collected the month after month of sales, and the remaining
will be written off two months after month of sale.
The forecasted receivable balance on Jan. 1, 2022 is P3,500,000, 90% of which is expected to be collected during the first
quarter while the remaining will be written off during the second quarter of 2022.
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| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
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Sales |
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| Recievable Balances as of the end of | ||||
| Cash Collections |
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