PROBLEM 7-A SALES BUDGETSales volume for the year 2017 has been estimated for Queennie Apparels as follows:ProductsPants46,00049,00043,00040,000ShirtsQuartersFirstSecondThirdDresses32,00035,00031,00029,00083,000 127,000 178,00018,00021,00024,00020,000FourthTotalSelling prices for these products are: Shirts - P65; Dresses - P100; Pants - P180. Anestimated 5% of sales is expected for sales returns and allowances. 80% of sales are onaccount and 20% is cash sales. 75% of credit sales is collected in the same quarter of the salewhile 25% is collected in the following quarter.Required:Prepare a sales budget for the year 2017 with a schedule of expected cash collections.

Sales Budget for the Year 2017 Shirts Dresses Pants Total units Total sales…

Answered: Prepare a sales budget for the year…

Business

Accounting

Prepare a sales budget for the year 2017 with a schedule of expected cash collections.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Budgeted Income Statement

Accounting is the process of recording business-related financial transactions. The process of accounting involves summarizing and analyzing the transactions. The financial statements which are prepared in accounting contain a summary of the various transactions that took place within a certain accounting period. Book-keeping or accounting is one of the most important activities of any business.

Question

PROBLEM 7-A SALES BUDGET
Sales volume for the year 2017 has been estimated for Queennie Apparels as follows:
Products
Pants
46,000
49,000
43,000
40,000
Shirts
Quarters
First
Second
Third
Dresses
32,000
35,000
31,000
29,000
83,000 127,000 178,000
18,000
21,000
24,000
20,000
Fourth
Total
Selling prices for these products are: Shirts - P65; Dresses - P100; Pants - P180. An
estimated 5% of sales is expected for sales returns and allowances. 80% of sales are on
account and 20% is cash sales. 75% of credit sales is collected in the same quarter of the sale
while 25% is collected in the following quarter.
Required:
Prepare a sales budget for the year 2017 with a schedule of expected cash collections.

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