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REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021 to 31 October 2021. Show all workings Round to the nearest Rand.

REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021 to 31 October 2021. Show all workings Round to the nearest Rand.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are the total sales of Top Class Ltd for the past three months of 2021 Month April May June Total Sales R900 000 R700 000 R500 000 The budgeted sales figures for the next three months are expected as follows Month July August September Total Sales R825 000 R760 000 R920 000 Additional information 1) 40% of all sales are made in cash. 2) Credit sales for October 2021 are expected to be R450 000. 3) Debtors are collected as follows. 15% of outstanding amounts are collected during the month following the month of sale (i.e.: 30 days). A discount of 4,5% is offered for early settlement of accounts. 60% is collected in the subsequent month (i.e.: 60 days). 20% is collected in the subsequent month (i.e.: 90 days). The balance is irrecoverable and needs to be written off. REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021 to 31 October 2021. Show all workings Round to the nearest Rand.
Transcribed Image Text:The following are the total sales of Top Class Ltd for the past three months of 2021 Month April May June Total Sales R900 000 R700 000 R500 000 The budgeted sales figures for the next three months are expected as follows Month July August September Total Sales R825 000 R760 000 R920 000 Additional information 1) 40% of all sales are made in cash. 2) Credit sales for October 2021 are expected to be R450 000. 3) Debtors are collected as follows. 15% of outstanding amounts are collected during the month following the month of sale (i.e.: 30 days). A discount of 4,5% is offered for early settlement of accounts. 60% is collected in the subsequent month (i.e.: 60 days). 20% is collected in the subsequent month (i.e.: 90 days). The balance is irrecoverable and needs to be written off. REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021 to 31 October 2021. Show all workings Round to the nearest Rand.
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