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 19; 20 2020 © The Independent Institute of Education (Pty) Ltd 2020 Page 5 of 11 Required: Q.3.1 Prepare the schedule of budgeted receipts from debtors for the period 1 January 2020 to 31 March 2020. Round to two decimals.
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
19; 20 2020
© The Independent Institute of Education (Pty) Ltd 2020
Page 5 of 11
Required:
Q.3.1 Prepare the schedule of budgeted receipts from debtors for the period 1 January
2020 to 31 March 2020. Round to two decimals.
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