Kau.5 Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.Serdnic ReedsSales BudgetFor the Four Months Ended JanuaryNovemberDecemberCash salesCredit salesTotal salesOctoberJanuary Serdnic Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896,000 in October, $058,000 in November, $1,025,000in December, and $922,000 in January. Serdnic's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collectedas follows:20% in the month of the sale60% in the month after the sale14% two months after the sale6% are never collectedRequirements1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar.

Sales budget is the estimation of a firm's total revenue over a specific period of time it includes…

Answered: Serdnic Reeds, a manufacturer of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
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Rovniak Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896,000 in October, $956,000 in November, $1,045,000 in December, and $928,000 in January. Rovniak's sales are 20% cash and 80% credit. The company's collection history indicates that credit sales are collected as follows: 25% in the month of the sale 60% in the month after the sale 12% two months after the sale 3% are never collected Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. Rovniak Reeds Sales Budget For the Four Months Ended January October November December January Cash sales Credit sales Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Rovniak Reeds Budgeted Cash Collections from…
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