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Chapter 7 on Master Budget and Cash Budgeting Exercise Orange was preparing its sales budget for the third quarter of 2 0 1 4 following
Chapter on Master Budget and Cash Budgeting Exercise
Orange was preparing its sales budget for the third quarter of following the release of Premium Orange Juice. Forecast sales are as follows in millions of dollar.
October
$ millions
November
$ millions
December
$ millions
Sales are cash and on credit. Fiftyfive percent of the credit accounts are collected in the month of sale, in the following month, in the month, and the balance is uncollectible and written off as bad debts. Hint:
Accounts receivable at the end of September to be received in October are $ million of August credit sales of $ million and of September credit sales of $ million
Prepare a schedule showing sales forecast and cash collections for the quarter
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