Question: The management of Vuti has supplied the following sales amounts for the next five months: January February March April May R60 000 R75 000

The management of Vuti has supplied the following sales amounts for the next five months: January February March April May R60 000 R75 000 R55 000 R65 000 R50 000 Additional information: Off all sales 35% are cash sales based in value. Of credit sales 50% is collected within the month of sales. Two-thirds of the credit sales collected within the month of sales receives 2% discount. A further 30% of credit sales is collected in the following month; and the remaining credit sales is collected in the month thereafter. Bad debts amounts to 3% of the credit sales. Required: Prepare a debtor's collection schedule that clearly shows how credit sales for the five months will be collected. NB: Round off calculations to two decimal places and the final amount to the nearest value.
Step by Step Solution
3.59 Rating (156 Votes )
There are 3 Steps involved in it
The timetable for collecting debts is the calendar that details the amount of money collected from t... View full answer
Get step-by-step solutions from verified subject matter experts
