The following forecasted information was taken from the books of Pakhama Enterprises.The following information is also provided for Pakhama Enterprises:60% of all sales is on credit.Debtors are expected to pay their debts as follows:• 70% in the first month after the sale (after 30 days)• 20% in the second month after the sale (after 60 days)• 7 % in the third month after the sale (after 90 days)• 3% is irrecoverableCredit losses are written off at the end of the month in which the last instalment is received.Debtors will amount to R104 994 on 1 Jan 2020.Total sales for 2019 are as follows:• October 2019 = R120 000• November 2019 = R132 000• December 2019 = R135 000Month 2020 Budgeted SalesJanuary 120 000February 140 000March 168 000April 144 000May 128 000June 100 000 Required:b. Prepare the schedule of budgeted receipts from debtors for the period 1 January2020 to 31 March 2020. Round to two decimals.a. Pakhama Enterprises wants to extent its credit terms in order to increase the sales to grow the business. A consultant has, however, warned them that this can lead to overtrading.
The following
The following information is also provided for Pakhama Enterprises:
60% of all sales is on credit.
Debtors are expected to pay their debts as follows:
• 70% in the first month after the sale (after 30 days)
• 20% in the second month after the sale (after 60 days)
• 7 % in the third month after the sale (after 90 days)
• 3% is irrecoverable
Credit losses are written off at the end of the month in which the last instalment is received.
Debtors will amount to R104 994 on 1 Jan 2020.
Total sales for 2019 are as follows:
• October 2019 = R120 000
• November 2019 = R132 000
• December 2019 = R135 000
Month 2020 Budgeted Sales
January 120 000
February 140 000
March 168 000
April 144 000
May 128 000
June 100 000
Required:
b. Prepare the schedule of budgeted receipts from debtors for the period 1 January
2020 to 31 March 2020. Round to two decimals.
a. Pakhama Enterprises wants to extent its credit terms in order to increase the sales to grow the business. A consultant has, however, warned them that this can lead to overtrading.
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