The following data is related to the two questions that follow. A company has the following budgeted sales in each quarter of the year 2024: Expected Sales Q1 Q2 Q3 Q4 $240,000 $280,000 $300,000 $380,000 Cash collection information is as follows: 1. Of all sales, 70% are on credit. 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter; and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $76,000 on December 31,2023. The company expects to collect all outstanding receivables in the first quarter of 2024. Q. What is the total cash collection for the second quarter of 2024? Answer. (Click to select) Q. What is the ending balance of Accounts Receivable for 2024? Answer. (Click to select)
The following data is related to the two questions that follow. A company has the following budgeted sales in each quarter of the year 2024: Expected Sales Q1 Q2 Q3 Q4 $240,000 $280,000 $300,000 $380,000 Cash collection information is as follows: 1. Of all sales, 70% are on credit. 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter; and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $76,000 on December 31,2023. The company expects to collect all outstanding receivables in the first quarter of 2024. Q. What is the total cash collection for the second quarter of 2024? Answer. (Click to select) Q. What is the ending balance of Accounts Receivable for 2024? Answer. (Click to select)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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3
Transcribed Image Text:The following data is related to the two questions that follow.
A company has the following budgeted sales in each quarter of the year 2024:
| | Expected Sales |
|-----|----------------|
| Q1 | $240,000 |
| Q2 | $280,000 |
| Q3 | $300,000 |
| Q4 | $380,000 |
Cash collection information is as follows:
1. Of all sales, 70% are on credit.
2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter; and 10% are collected in the second quarter after the sale.
3. Accounts Receivable is estimated to be $76,000 on December 31, 2023. The company expects to collect all outstanding receivables in the first quarter of 2024.
Questions:
Q. What is the total cash collection for the second quarter of 2024?
- Answer: (Click to select)
Q. What is the ending balance of Accounts Receivable for 2024?
- Answer: (Click to select)
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