prepare debtors collection schedule for April and May 2022 prepare the cash budget for April and May 2022

prepare debtors schedule and cash budget for April and may

- 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. - Plane Limited will make an investment of R30 000 in fixed deposit on 01 April 2020. Interest of R500 per month is expected to be received from 30 April 2020. - Creditors are paid 2 months after the date of invoice. - Rent expense amounts to R6 000 per month and is payable on the first day of each month. - Wages will be increased by 10% in April 2020 and will increase by a further 5% in May 2020. - A new machine is expected to be purchased for R25000 cash in May 2020. - Commission is paid to sales personnel in the month following the month in which it was eamed. - On 31 March 2020 Plane Limited had a debit bank balance of R11000