Jane sport shop projects the following sales, P75,000 for April, P95,000 for May, and P110,000 for June. Ninety percent of Jane' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were P60,000, and march sales were P70,000. In the past Jane s' bad debt percentage has been 0 and is expected to continue. a. Prepare a monthly schedule of cash receipts for April-June. b. What is the balance of receivables at the end of June?
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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