The total budgeted sales of longile limited for the first half of 20.6 are expected to be as follows:

Month of 20.6    Budgeted total sales (R)

January                    120 000

February                  140 000

March                     168 000

April                         144 000

May                        128 000

June                          100 000

Debtors are expected to pay their debt as follows:

70% in the first month following the month of the sale.

20% in the second month following the month of the sale.

7% in the third month following the month of the sale.

Note: 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 R179 200 on 1 January 20.6. Total sales for October 20.5, November 20.5 and December 20.5 were R112 000, R120 000, and R132 000 respectively. Credit sales account for 50% of Total sales.

Create a schedule of budgeted receipts from debtors for the period 1 January 20.6 to 30 June 20.6

Answer rating: 100% (QA)

Creating a schedule of budgeted receipts from debtors involves looking at the scheduled sales for ea... View the full answer