On average, it takes 3 months before Oriole Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 20% of customers paying in the month of sale, 40% paying the month after sale, and 35% paying their balance 2 months after the sale; the remaining 5% is considered uncollectible. Given Oriole's budgeted sales for the 4 months leading up to quarter-end, as shown below, determine the company's collectible (or net) A/R balance on September 30. June Budgeted sales $48,500 July $48,000 A/R balance on September 30 $ August $53,800 September $76,600
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.
![On average, it takes 3 months before Oriole Corp. fully completes the collection cycle for its credit sales. All sales are made on
account, with 20% of customers paying in the month of sale, 40% paying the month after sale, and 35% paying their balance 2
months after the sale; the remaining 5% is considered uncollectible. Given Oriole's budgeted sales for the 4 months leading up to
quarter-end, as shown below, determine the company's collectible (or net) A/R balance on September 30.
June
Budgeted sales $48,500
A/R balance on September 30
July
$48,000
$
August
$53,800
September
$76,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91605255-8a3f-4f90-b4a0-4e9393375805%2Fbcd6b7da-0bd7-45a8-82fd-50425cabd51c%2F70eh7rs_processed.jpeg&w=3840&q=75)
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