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Question 1 ( 2 0 Mr BUDGETS 2 The following information has been projected by the management of GORGEOUS TRADING for the forecast period 0

Question 1
(20 Mr
BUDGETS
2
The following information has been projected by the management of GORGEOUS TRADING for the forecast period 0. September 2024 to 31 October 2024.
Information: q,
1.
\table[[PROJECTIONS,ACTUAL,BUDGETED],[JULY,AUGUST,SEPTEMBER,OCTOBER],[Cash Sales,150000,100000,120000,140000],[Credit Sales,100000,80000,60000,90000],[Purchases,70000,60000,100000,70000],[,,,,]]
Collections of credit sales from debtors:
50% in the month of sales
30% one month after the sales
15% two months after the sales
Balance due is irrecoverable and must be written off as bad debts.
All purchases are on credit and creditors are paid one month after purchase less 10% discount.
A fixed deposit of R15000 is maturing on 20 September 2024. An interest of R2000 will also be due on this date.
Salaries amounts to R30000 per month. However, an increase of 8% will come into effect from 01 October 2024.
An air-conditioned system costing R25000 is scheduled to be purchased and installed for cash in October 2024.
Variable expenses are expected to be R18000 per month and expected to increase by R2000 with effect from 01 October 2024.
The owner withdraws R20000 cash each month for her personal use.
A loan repayment of R50000 is made annually on 01 September.
The expected Bank balance on 01 September is an unfavorable bank balance of R7850.
Required:
Debtors Collection Schedule for the budgeted period, September to October 2024.
(6 marks)
Statement of Cash Budget for the Budgeted period, September to October 2024.
(14 marks)
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