Craig has projected sales to be $90,400 in April; $96,400 in May; $104,500 in June and $93,600 in July. The history of Craig’s sales indicates 20% cash and the remaining 80% on credit. The company’s collection history indicates that credit sales are collected as follows:30% collected in the month of the sale60% collected in the month after the sale8% collected two months after the sale2% of credit sales are never collected Prepare a Sales Budget for all four months, showing breakdown between cash and credit salesSales BudgetTotal salesCash salesCollection of credit sales:Craig's Design and LandscapingSales BudgetMayAprilPrepare the Cash Budget for June and July. Round all answers to nearest dollarCash Collections BudgetTotal cash collectionsTotal collection of credit salesJuneCraig's Design and LandscapingBudgeted Cash Collections from CustomersJuneArea to show work for collection of credit sales: (optional)JulyJulyWhat does the 2% of credit sales not collected represent? Should this be of concern for Craig?

A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

Craig has projected sales to be $90,400 in April; $96,400 in May; $104,500 in June and $93,600 in July. The history of Craig’s sales indicates 20% cash and the remaining 80% on credit. The company’s collection history indicates that credit sales are collected as follows: 30% collected in the month of the sale 60% collected in the month after the sale 8% collected two months after the sale 2% of credit sales are never collected

Craig has projected sales to be $90,400 in April; $96,400 in May; $104,500 in June and $93,600 in July. The history of Craig’s sales indicates 20% cash and the remaining 80% on credit. The company’s collection history indicates that credit sales are collected as follows: 30% collected in the month of the sale 60% collected in the month after the sale 8% collected two months after the sale 2% of credit sales are never collected

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 2PA: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...

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