The half year results of Manhattsons Manufacturing Ltd have been completed at 31 August 2019. The last quarter's actual sales and the forecasted sales numbers are as follows: Actual Sales (as per Statement of Forecasted Sales (as per forecasted Statement Comprehensive Income) of Comprehensive Income) June 2019 July 2019 August 2019 September October November 2019 2019 2019 198 000 288 000 396 000 450 000 558 000 630 000 Additional Information: 75% of all sales are on credit. The debtors collection history is as follows: 60% of outstanding amounts are collected during the month following the month of the sale (30 days). The company policy is to allow a settlement discount of 2.5% for all sales settled within 30 days. 25% of outstanding amounts are collected during the second month following the month of the sale (60 days). 10% of outstanding amounts are collected during the third month following the month of the sale (90 days). 5% is irrecoverable. Credit losses are written off at the end of the month in which the last instalment is received.

The half year results of Manhattsons Manufacturing Ltd have been completed at 31 August 2019. The last quarter's actual sales and the forecasted sales numbers are as follows: Actual Sales (as per Statement of Forecasted Sales (as per forecasted Statement Comprehensive Income) of Comprehensive Income) June 2019 July 2019 August 2019 September October November 2019 2019 2019 198 000 288 000 396 000 450 000 558 000 630 000 Additional Information: 75% of all sales are on credit. The debtors collection history is as follows: 60% of outstanding amounts are collected during the month following the month of the sale (30 days). The company policy is to allow a settlement discount of 2.5% for all sales settled within 30 days. 25% of outstanding amounts are collected during the second month following the month of the sale (60 days). 10% of outstanding amounts are collected during the third month following the month of the sale (90 days). 5% is irrecoverable. Credit losses are written off at the end of the month in which the last instalment is received.

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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