Wells Company reports the following budgeted sales: September, $58,00O; October, $71,000; and November. $75.000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale, Prepare a schedule of cash receipts for November. WELLS COMPANY Schedule of Cash Receipts from Sales November Sales $ 75,000 Gash receipts from Cash sales Collection of October sales Collection of September sales Total cash receipts
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.
![Wells Company reports the following budgeted sales: September, $58,000; October, $71,000; and November. $75,000. All sales are
on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as
follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts for November.
WELLS COMPANY
Schedule of Cash Receipts from Sales
November
Sales
S 75,000
Cash receipts from:
Cash sales
Collection of October sales
Collection of September sales
Total cash receipts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F585cc218-e59e-4e0a-a740-fe4b75065fa8%2F37ff28d2-7296-4419-9b8a-335a651376b8%2Fi60ivmb_processed.jpeg&w=3840&q=75)
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