Harrti Corporation has budgeted for the following sales: July $ 446,600 August $ 581,600 September $ 615,800 October $ 890,800 November $ 738,000 December $ 698,000 Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Harrti's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?
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.
Harrti Corporation has budgeted for the following sales:
| July | $ | 446,600 |
| August | $ | 581,600 |
| September | $ | 615,800 |
| October | $ | 890,800 |
| November | $ | 738,000 |
| December | $ | 698,000 |
Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Harrti's budgeted
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