QUESTION 5 [5 MARKS] The following details have been extracted from the debtor collection records of S Plc

Invoice paid in the month after sale	60%
Invoice paid in the second month after sale	20%
Invoice paid in the third month after sale	10%
Bad debts	10%

Customers paying in the month after sale are entitled to a 15% discount. Credit sales for January to April are budgeted as follows:

Jan	Feb	Mar	Apr
P40,000	P45,000	P50,000	P60,000

Required: Calculate the amount due to be received from debtors in April.

QUESTION 6 [8 MARKS] Eric Clothing Limiteds annual demand for materials X is 50 000 units, and the ordering cost is P10 000 per order and each unit costs P3 000. The estimated cost of holding unit of stock is 15% of the purchase cost. Required: a. Calculate the economic order quantity (EOQ) and; (4 marks) b. Calculate the total annual costs of material X. (4 marks)