Budgeted Sales for the Third Quarter of the Year for Brown

question 39

Essay

Budgeted sales for the third quarter of the year for Brown Company are as follows: $\begin{array}{lr}& \text { Budgeted Sales } \\\text { July } & £ 300,000 \\\text { August } & 375,000 \\\text { September } & 450,000\end{array}$ The company normally collects 30 per cent in the month of sale and 65 per cent in the month following the sale. Five per cent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at July 1 was £245,000, which represents 70 per cent of June sales.

---

Definitions:

Construction Contractor

A business or individual that contracts to perform construction services, often involving both labor and materials for building projects.

Carpenters

Skilled tradespeople who work with wood to construct, install, and maintain buildings, furniture, and other objects.

Factory Overhead Cost

Indirect costs incurred during the manufacturing process, not directly associated with the production of goods, like utilities and rent for the manufacturing space.

Materials

The physical substances or components used in the production of goods.