Question 1) The budgeted sales for the first quarter are listed below.
January February March Total for Quarter
Budgeted Sales 270,000 360,000 450,000 1,080,000
Additional information:
- Sales commissions equal 20% of sales and are paid each month.
- Sales salaries (excluding commission) are $90,000 per year.
What are the total selling expenses for the quarter?
Q2) Expected cash collection pattern is 60% in the month of sale and 40% in the following month. Given the sales budget presented below, how much cash is expected to be collected in January?
October November December January
Budgeted Credit Sales 40,000 50,000 60,000 35000