Question $1$

Peter sells goods to customers on credit. It is forecast that credit sales for July will be

RM$36,000$ and that sales will increase by RM$2,000$ per month for the next six

months. Based on past experience Peter expects $50\%$ of customers to pay in the

month after sale, $25\%$ of customers to pay $2$ months after sale and the remainder to

pay $3$ months after sale. PJ has a trade receivable balance outstanding at the

beginning of July of RM$65,000.$

Required:

a$.$ Calculate the cash that $PJ$ will receive from credit customers during the six

months period to the end of December.

$(11$ marks$)$ final answer is $232500$

b$.$ State TWO methods that the supplier could use to reduce its level of outstanding

trade receivables.

$(4$ marks$)$