Question
historically, Mapplethorpe company has had no significant bad debt experience with it's customers cash sales have accounted for 10% of total sales and payments for
historically, Mapplethorpe company has had no significant bad debt experience with it's customers cash sales have accounted for 10% of total sales and payments for credit sales have been received as follows 1.45% of credit sales in the month of sale. 2. 35% of credit sales in the first subsequent month. 3.16% of credit sales in the second subsequent month. 4.4% of credit sales in the third subsequent month. the forecast for both cash and credit sales is as follows: January R195000 February R188 000 March R192 000 April R204 000 May 212 000. Required: 1.1 prepare a sales budget for quarter 1 1.2 calculate the forecasted cash inflow for Maplethorpe company for may 1.3 Due to deteriorating economic condition. Maplethorpe company has now decided that it's forecast should include a bad debt adjustment of 2% of credit sales. beginning with sales for the month of April because this policy change what will happen to the total expected cash inflow related to sales made in April?
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