Benton Company's sales budget shows the following expected total sales: Month January February March April Multiple Choice The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 71% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: $27,605. Sales $ 23,000 $32,000 $37,816. $ 37,000 $ 42,000
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
