Question

BA233 - Accounting for Managers
M6 Step 5 Learning Activity
Make sure to read the activity notes before you attempt this activity. Detailed instructions for
completing the activity are included in the notes.
Golden Lamp Company
Dollars should be shown to the nearest cent. Place the $ signs in the appropriate locations.
Prepare a sales budget and budgeted accounts receiable and cash collections for the months April
through June.
Here's some information you will need:
o	All sales are on account. That means all sales will be in accounts receivable.
o	15% of sales will be collected in the month of the sale. For example 15% of April sales will be collected in April.
o	85% of sales will be collected in the month after the sale. For example, the remainder of April sales (85%) will
	be collected in May.
Golden Lamp Company
Sales Budget
For the Months April through June
					April		May		June		Total
Budgeted sales in lamps					193		245		136		574
Selling price per lamp					$           51.00		$           51.00		$         53.00		$       155.00
Total sales					$      9,843.00	#	$   12,495.00	#	$    7,208.00		$ 29,546.00
Schedule by Bill Armstrong
Budgeted Accounts Receivable and Cash Collections
Beginning balance of accounts receivable					$      4,564.00
Add: Sales on account
Total accounts receivable
Expected cash receipts from customers
	Previous month's accounts receivable				4,564.00
	Current month sales
	Total cash receipts
Estimated ending balance in accounts receivable

Answer 1

Budgeted Accounts Receivable and Cash Collections	April	May	June	Total
Beginning balance of accounts receivable	$4,564.00	$8,366.55	$10,620.75	$23,551.30
Add: Sales on account	$9,843.00	$12,495.00	$7,208.00	$29,546.00
Total accounts receivable	$14,407.00	$20,861.55	$17,828.75	$53,097.30
Expected cash receipts from customers
Previous month's accounts receivable	$4,564.00	$8,366.55	$10,620.75	$23,551.30
Current month sales (15% x Sales on Account)	$1,476.45	$1,874.25	$1,081.20	$4,431.90
Total cash receipts	$6,040.45	$10,240.80	$11,701.95	$27,983.20
Estimated ending balance in accounts receivable	$8,366.55	$10,620.75	$6,126.80	$25,114.10