Budget Preparation

So if I take a scenario where

the invoice is at the end of the month of october

Would this then be recorded as a cash sale in October or November then sir??

All sales are on credit.
More favourable credit terms are offered to larger customers (class A) than to smaller customers (class B). All sales are invoiced at the end of the month in which the sale occurs. Class A customers will be given credit terms requiring payment within 60 days of invoicing, while class B customers will be required to pay within 30 days of invoicing.
Since it is recognised, however, that not all customers comply with the credit terms they are allowed, receipts from customers have prudently been estimated as follows:
Customer type
Class A Class B
Within 30 days
60%
31 to 60 days
50% 25%
61 to 90 days
30% 10%
91 to 120 days
15%
Bad debts
5% 5%
The above table shows that customers are expected either to pay within 60 days of the end of the credit period, or not at all. Bad debts will therefore be written off 60 days after the end of the credit period.
Budgeted credit sales for each class of customer in the first 4 months of trading are as follows:
Customer type
Assume all months are of 30 days.
Required
October November December January
$’000 $’000 $’000 $’000
class A100 150 200 300
class B 60 80 40 50
(a) Prepare a statement showing the budgeted cash to be received by HM Co from customers in each of the three months of November 20X2, December 20X2 and January 20X3, based upon the prudently estimated receipts from customers.

Sir why is october’s credit sales of class B (within 30 days) recorded in november then sir???

Okay sir i understood this concept but I just have a doubt with discounts also

Will discounts be included in the cashflow or would that be ignored just like bad debts?

Oh thank you sir

I understood the concept that interest and depreciation are not recorded because there aren’t actual cash outflows

But I’m wondering why bad debts are not recorded
I understand the fact that bad debts are not recorded because they also work in the same fashion as interest but when you look at bad debts closely these are actual sales being lost

Sir is bad debts not recorded because it has something to do with trade recievables(Trade recievables don’t actually have any cashflows)

Sir I still have a question in regard with this question

Just to be clear if the question does not mention the word invoice and says that the company will pay in 30 days would that mean within the month or the next month

Also for questions that specify that the invoice is payed within 30 days
It’s definitely next month ryt sir?