Pat's Mediterranean Restaurant is preparing its budgeted balance sheet for the coming year. The cash receipts budget indicates that net sales in the fourth quarter of 2022 are $ 36,000. Pat expects 25% of these sales to be cash. Of the credit sales, it expects 80% to be collected in the quarter of the sale and 20% to be collected in the following quarter. What amount will Pat report as accounts receivable on the budgeted balance sheet at December 31, 2022. Select answer from the options below $9,000 $5, 400 $1,800 $7, 200
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.
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