Question
**PLEASE ANSWER ALL SUB-QUESTIONS AND EXPLAIN STEP BY STEP, PLEASE INCLUDE FORMULAE IN CORRECT FORMAT NOT COMPUTED VERSIONS, PLEASE INCLUDE NOMENCLATURE FOR ALL FORMULAE USED.
**PLEASE ANSWER ALL SUB-QUESTIONS AND EXPLAIN STEP BY STEP, PLEASE INCLUDE FORMULAE IN CORRECT FORMAT NOT COMPUTED VERSIONS, PLEASE INCLUDE NOMENCLATURE FOR ALL FORMULAE USED. THANK YOU FOR THE ASSISTANCE! ** PLEASE ANSWER THE ENTIRE QUESTION UNTIL THE END**
11. Commission is paid to sales personnel in the month following the month in which it was earned. 12. On 31 March 2020, Intec (Pty) Ltd had a bank overdraft of R28 000
Required: 3.1. Prepare the debtors collection schedule for April and May 2020. 3.2. Prepare the cash budget for April and May 2020.
**PLEASE NOTE: ONLY ANSWER 3.2 USING THE SOLUTIONS FOR 3.1 BELOW. THANK YOU!***
Wages April | 800*110% = 880 |
Wages May | 880*105% = 924 |
Debtors Collection Schedule |
April 2020 |
(a) 20% of 160000 will be collcted in the month of April itself after 2% discount. 160000*98%*20% = 31360 |
(b) 60% of 60000 will be collected in the month of April relating to March. 60000*60% = 36000 |
('c) 15% of 120000 will be collected in the month of April relating to Feb 2020. 120000*15% = 18000 |
Total Debtors collection during April 2020 is 85360 (a+b+c) |
May 2020 |
(a) 20% of 200000 will be collcted in the month of May itself after 2% discount. 200000*98%*20% = 39200 |
(b) 60% of 120000 will be collected in the month of May relating to April 2020. 120000*60% = 72000 |
('c) 15% of 60000 will be collected in the month of May relating to Mar 2020. 60000*15% = 9000 |
Total Debtors collection during April 2020 is 120200 (a+b+c) |
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