[20] The following information relates to Nappy Limited. The company is preparing its budget for 2020 and will detail the activities for each quarter of the year. 1. The following balances are expected on 31 December 2019: Cash at bank R200 000 Trade creditor for purchases R 80 000 2. Projected sales per quarter for 2020: R500 000 R750 000 First quarter Second quarter Third quarter Fourth quarter R800 000 R950 000 Thirty percent of the sales are for cash and these customers are entitled to a 3% cash discount. 3. Collection of credit sales: 60% of the credit sales are collected in the quarter of the sale and they are allowed a discount of 1%. 35% is collected in the following quarter and the balance is written off as a bad debt. [20] The following information relates to Nappy Limited. The company is preparing its budget for 2020 and will detail the activities for each quarter of the year. 1. The following balances are expected on 31 December 2019: Cash at bank R200 000 Trade creditor for purchases R 80 000 2. Projected sales per quarter for 2020: R500 000 R750 000 First quarter Second quarter Third quarter Fourth quarter R800 000 R950 000 Thirty percent of the sales are for cash and these customers are entitled to a 3% cash discount. 3. Collection of credit sales: 60% of the credit sales are collected in the quarter of the sale and they are allowed a discount of 1%. 35% is collected in the following quarter and the balance is written off as a bad debt