8-1A - Sales Budget and Schedule of Expected Cash Collections

Baker Company shows the following estimates for unit sales for 2017:

Q1 Q2 Q3. Q4 Year

Units sold 11,000 12,000 14,000 13,000 50,000

The company expects to sell its goods for $50 per unit.

Required:

a.) Prepare a sales budget for the year.

Additional information

The company expects to collect 70% of sales in the quarter of the sale, and 25% in the quarter

following the sale. 5% of sales are expected to be uncollectible. The companys beginning

accounts receivable was $125,000, all of which was expected to be collected in the first quarter.

answer the following questions.

a) What is the Bad Debt Expense for the year?

b) What are the total cash collections in the Third Quarter (Q3)?

c) What is the Accounts Receivable balance as at December 31?

d) What are the total sales in dollars ($) for Q1?