The following forecasted information was taken from the books of Pakhama Enterprises Month 2020 Budgeted Sales January 120 000 February 140 000 March 168 000 April 144 000 May 128 000 June 100 000 The following information is also provided for Pakhama Enterprises: 60% of all sales is on credit. Debtors are expected to pay their debts as follows: • 70% in the first month after the sale (after 30 days) • 20% in the second month after the sale (after 60 days) • 7 % in the third month after the sale (after 90 days) • 3% is irrecoverable Credit losses are written off at the end of the month in which the last instalment is received. Debtors will amount to R104 994 on 1 Jan 2020. Total sales for 2019 are as follows: • October 2019 = R120 000 • November 2019 = R132 000 • December 2019 = R135 000 Prepare the schedule of budgeted receipts from debtors for the period 1 January 2020 to 31 March 2020. Round to two decimals
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.
The following
| Month 2020 | Budgeted Sales |
| January | 120 000 |
| February | 140 000 |
| March | 168 000 |
| April | 144 000 |
| May | 128 000 |
| June | 100 000 |
The following information is also provided for Pakhama Enterprises:
60% of all sales is on credit.
Debtors are expected to pay their debts as follows:
• 70% in the first month after the sale (after 30 days)
• 20% in the second month after the sale (after 60 days)
• 7 % in the third month after the sale (after 90 days)
• 3% is irrecoverable
Credit losses are written off at the end of the month in which the last instalment is received.
Debtors will amount to R104 994 on 1 Jan 2020.
Total sales for 2019 are as follows:
• October 2019 = R120 000
• November 2019 = R132 000
• December 2019 = R135 000
Prepare the schedule of budgeted receipts from debtors for the period 1 January
2020 to 31 March 2020. Round to two decimals.
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