2. For each of the following indicate yes if it describes a potential benefit of budgeting or no if it describes a potential negative outcome of budgeting.

1. Budgets can lead to excessive pressure to meet budgeted results.	No
2. Comparing actual to budgeted performance can aid in monitoring and control.
3. Employees might commit unethical acts to meet budgeted goals.
4. Budgets can be used to motivate employees.	No
5. Some employees might understate sales in budgets.

12. Kingston budgets total sales for June and July of $430,000 and $468,000, respectively. Cash sales are 65% of total sales. Of the credit sales, 15% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 20% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the companys budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.

Sales month	Total Sales	Credit Sales	As of July 31
			Percent Uncollected	Amount Uncollected
June	$430,000
July	468,000
Total