5.2 INFORMATION: Trencor Limited has provided the following information: 1. Total sales ACTUAL BUDGETED July August...

  

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5.2 INFORMATION: Trencor Limited has provided the following information: 1. Total sales ACTUAL BUDGETED July August September October November December R520 000 R540 000 R580 000 R610 000 R650 000 R730 000 2. Thirty percent of sales are for cash. 3. Credit sales are collected as follows: a. 60% one month after sales - these customers qualify for a 10% discount b. 20%, two months after sales c. 15% three months after sales d. The remainder is written off as bad debts. 5.2 INFORMATION: Trencor Limited has provided the following information: 1. Total sales ACTUAL BUDGETED July August September October November December R520 000 R540 000 R580 000 R610 000 R650 000 R730 000 2. Thirty percent of sales are for cash. 3. Credit sales are collected as follows: a. 60% one month after sales - these customers qualify for a 10% discount b. 20%, two months after sales c. 15% three months after sales d. The remainder is written off as bad debts.

Answer rating: 100% (QA)

To calculate the cash collections for each month we will first determine the credit sales for each m... View the full answer