Trever Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $894,000 in October, $966,000 in November, $1,070,000 in December, and $932,000 in January. Trever's sales are 25% cash and 75% credit.
The company's collection history indicates that credit sales are collected as follows:
View the credit sales collection history.
Requirements
1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.
2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar.
Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.
Trever Reeds
Sales Budget
Credit sales collection history
For the Four Months Ended January
October
Cash sales
Credit sales
Total sales
November
December
January
20% in the month of the sale
70% in the month after the sale
8% two months after the sale
2% are never collected
Print
Done