PROBLEM 7-G COLLECTIONS BUDGET Marga Corporation has the following historical pattern of credit sales 70% during the month of sale 15% in the first month after sale 10% in the second month after sale 4% in the third month after sale 1% uncollectible Sales on account for the last six months of the year were reported as follows: July P120,000 October P180,000 August 140,000 November 200,000 September 160,000 December 170,000 Required: 2. A/R balance on the Balance Sheet as of Dec. 31
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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