4. 56 6. 5. 7. QUESTION THREE BONGO Ltd supplies cellular and smartphone accessories. Information 1. The following figures are available: Actual (2021) Estimated (2021) January February March April May R R R R Sales 192 000 240 000 120 000 320 000 400 000 Purchases 200 000 100 000 320 000 168 000 120 000 Sales commission 800 1 200 2 400 1 600 800 Wages 1 600 1 600 1 600 ? 2. Cash transactions: 3. [20] 40% of all sales are for cash. 35% of all purchases are for cash. Collections for credit sales are as follows: 20% is collected in the month of the sale and a 2% discount is granted on these collections. 60% is collected in the month following the month of sale. 15% is collected in the second month following the month of sale. The remaining 5% is written off as bad debts. BONGO Ltd will make an investment of R80 000 in fixed deposit on 1 April 2021. Interest of R1 000 per month is expected to be received from 30 April 2021. Creditors are paid 2 months after the date of invoice. Rent expense amounts to R18 000 per month and is payable on the first day of each month. Wages will be increased by 10% in April 2021 and will increase by a further 5% in May 2021. A new machine is expected to be purchased for R36 000 cash in May 2021. 8. 9. Commission is paid to sales personnel in the month following the month in which it was earned. 10. On 31 March 2021 BONGO Ltd had a bank overdraft of R6 000. Required: Use the information provided to: 3.1 3.2 Prepare a debtor's collection schedule for April and May 2021. Prepare the cash budget for April and May 2021. Note: Where applicable, round off all amounts to the nearest Rand. (6) (14)