Acc561 Introduction to Management Accounting: 7-30 Suppose a Gap store has (Version 1)

Acc561 Introduction to Management Accounting

7-30 Sales Budget (Version 1)
Suppose a Gap store has the following data:
• Accounts receivable, May 31: (.3 × May sales of $400,000) = $120,000
• Monthly forecasted sales: June, $400,000; July, $440,000; August, $500,000; September, $530,000
Sales consist of 70% cash and 30% credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored.

Prepare a sales budget schedule and a cash collections budget schedule for June, July, and August.
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