If sales for January are $10,000 and sales for February are $20,000 and all sales are credit sales and the pattern of collection is 100% is collected the month following the sale, how much is collected in March? A. 10,000 B. 20,000 C. 30,000
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.
If sales for January are $10,000 and sales for February are $20,000 and all sales are credit sales and the pattern of collection is 100% is collected the month following the sale, how much is collected in March?
A. 10,000
B. 20,000
C. 30,000
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