In a cash budget, credit sales to customers are recorded at the time the sale is made.

Question

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In a cash budget, credit sales to customers are not recorded at the time of sale, as they do not immediately result in cash inflows. Only cash sales or collections from credit sales are recorded, as they directly impact the cash balance. Credit sales and their associated collections are typically projected separately in a sales forecast and accounts receivable schedule, which are used in conjunction with the cash budget.

In a Cash Budget, Credit Sales to Customers Are Recorded