The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: January February March Sales budget $ 185,000 $ 203,000 $ 225,000 Credit sales are collected as follows: 65 percent in the month of the sale. 20 percent in the month after the sale. 15 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $81,000 ($59,000 of which were uncollected December sales). Compute the sales for November.
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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The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: |
| January | February | March | |
|---|---|---|---|
| Sales budget | $ 185,000 | $ 203,000 | $ 225,000 |
|
Credit sales are collected as follows: |
| 65 percent in the month of the sale. |
| 20 percent in the month after the sale. |
| 15 percent in the second month after the sale. |
|
The |
Compute the sales for November.
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