= Freddie Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $906,000 in October, $956,000 in November, $1,030,000 in December, and $938,000 in January Freddie's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% are never collected Requirements 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. Freddie Reeds Sales Budget For the Four Months Ended January October Cash sales Credit sales Total sales November December January

= Freddie Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $906,000 in October, $956,000 in November, $1,030,000 in December, and $938,000 in January Freddie's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% are never collected Requirements 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. Freddie Reeds Sales Budget For the Four Months Ended January October Cash sales Credit sales Total sales November December January

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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