Bennett Inc. found that about 35% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August 300,000 Required: 1. Calculate credit sales for May.$ Calculate credit sales for June.$ Calculate credit sales for July.$ Calculate credit sales for August.$ Feedback 2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers. Bennett Inc.Schedule of Cash ReceiptsFor July and August July August Cash sales $ $ Payments on account: From May credit sales: $ × % From June credit sales: $ × % $ × % From July credit sales: $ × % $ × % From August credit sales: $ × % 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.
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Bennett Inc. found that about 35% of its sales during the month were for cash. Bennett has the following
accounts receivable payment experience:Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows:
April $250,000 May 290,000 June 280,000 July 295,000 August 300,000 Required:
1. Calculate credit sales for May.
$Calculate credit sales for June.
$Calculate credit sales for July.
$Calculate credit sales for August.
$Feedback2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.
Bennett Inc.
Schedule of Cash Receipts
For July and AugustJuly August Cash sales $ $ Payments on account: From May credit sales: $ ×%From June credit sales: $ ×%$ ×%From July credit sales: $ ×%$ ×%From August credit sales: $ ×%Cash receipts $ $
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