MARS PAUTANG Company is preparing its cash budget for the month of June. The following information is available concerning its accounts receivable: Estimated credit sales for June P200,000 Actual credit sales for May P150,000 Estimated collections in June for credit sales in June 20% Estimated collections in June for credit sales in May 70% Estimated collections in June for credit sales prior to May P12,000 Estimated write-offs in June for uncollectible credit sales P8,000 Estimated provision for bad debts in June for credit sales in June P7,000 What are the estimated cash receipts from accounts receivable collections in June?
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.
MARS PAUTANG Company is preparing its
Estimated credit sales for June P200,000
Actual credit sales for May P150,000
Estimated collections in June for credit sales in June 20%
Estimated collections in June for credit sales in May 70%
Estimated collections in June for credit sales prior to May P12,000
Estimated write-offs in June for uncollectible credit sales P8,000
Estimated provision for
What are the estimated cash receipts from accounts receivable collections in June?
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