BDL plc is currently preparing its cash budget for the year to 31 March 20X8. An extract from its sales budget for the same year shows the following sales values. $ March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in the month after sale and take a2% discount; 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. What is the value of sales receipts to be shown in the cash budget for May 20X7?
A、$60,532
B、$61,120
C、$66,532
D、$86,620
A、$60,532
B、$61,120
C、$66,532
D、$86,620
【参考答案及解析】
$ 40% of May sales for cash (40% x $55,000) 22,000 70% of April credit sales less 2% discount (70% x 60% x $70,000 x 98%) 28,812 27% of March credit sales (27% x 60% x $60,000) 9,720 60,532 If you selected option B you forgot to allow for the two per cent discount. Option C works on the assumption that receipts from cash sales occur in the month after sale； by definition, cash sales receipts occur as soon as the sale is made. If you selected option D you calculated the credit receipts on the basis that all sales were made on credit； only 60 per cent of sales were on a credit basis.
$ 40% of May sales for cash (40% x $55,000) 22,000 70% of April credit sales less 2% discount (70% x 60% x $70,000 x 98%) 28,812 27% of March credit sales (27% x 60% x $60,000) 9,720 60,532 If you selected option B you forgot to allow for the two per cent discount. Option C works on the assumption that receipts from cash sales occur in the month after sale； by definition, cash sales receipts occur as soon as the sale is made. If you selected option D you calculated the credit receipts on the basis that all sales were made on credit； only 60 per cent of sales were on a credit basis.