prepare debtors collection schedule for April and May 2022 prepare the cash budget for April and May 2022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Please do not give solution in image format ? And Fast Answering Please And Explain Proper Step by Step.

moration
1. The following figures are available:
Sales
Purchases
Sales commission
Wages
·
40% of all sales are for cash.
35% of all purchases are for cash.
Collections for credit sales are as follows
●
●
Actual (2020)
January
●
R
96 000
100 000
400
800
●
February
R
120 000
50.000
600
800
20% is collected in the month of the sale and a 2% discount is granted on these collections.
60% is collected in the month following the month of sale.
15% is collected in the second month following the month of sale.
The remaining 5% is written off as bad debts.
March
R
60 000
160 000
1700
800
Estimated (2020)
May
April
R
160 000
84.000
800
2
200 000
60 000
400
2
Plane Limited will make an investment of R30 000 in fixed deposit on 01 April 2020. Interest of
R500 per month is expected to be received from 30 April 2020.
Creditors are paid 2 months after the date of invoice.
Rent expense amounts to R6 000 per month and is payable on the first day of each month.
Wages will be increased by 10% in April 2020 and will increase by a further 5% in May 2020.
A new machine is expected to be purchased for R25 000 cash in May 2020.
Commission is paid to sales personnel in the month following the month in which it was earned.
On 31 March 2020 Plane Limited had a debit bank balance of R11 000.
Transcribed Image Text:moration 1. The following figures are available: Sales Purchases Sales commission Wages · 40% of all sales are for cash. 35% of all purchases are for cash. Collections for credit sales are as follows ● ● Actual (2020) January ● R 96 000 100 000 400 800 ● February R 120 000 50.000 600 800 20% is collected in the month of the sale and a 2% discount is granted on these collections. 60% is collected in the month following the month of sale. 15% is collected in the second month following the month of sale. The remaining 5% is written off as bad debts. March R 60 000 160 000 1700 800 Estimated (2020) May April R 160 000 84.000 800 2 200 000 60 000 400 2 Plane Limited will make an investment of R30 000 in fixed deposit on 01 April 2020. Interest of R500 per month is expected to be received from 30 April 2020. Creditors are paid 2 months after the date of invoice. Rent expense amounts to R6 000 per month and is payable on the first day of each month. Wages will be increased by 10% in April 2020 and will increase by a further 5% in May 2020. A new machine is expected to be purchased for R25 000 cash in May 2020. Commission is paid to sales personnel in the month following the month in which it was earned. On 31 March 2020 Plane Limited had a debit bank balance of R11 000.
prepare debtors collection schedule for April and May
2022
prepare the cash budget for April and May 2022
Transcribed Image Text:prepare debtors collection schedule for April and May 2022 prepare the cash budget for April and May 2022
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education