QUESTION FIVE [15] 5.1 The sales director of New World Limited has drafted a scheme to increase sales by relaxing credit limits imposed on customers. Sales invoices, at present payable after a one-month credit period, should henceforward be payable after two months. Currently, sales are steady at R500 000 per month, earning a gross profit margin of 18%. If two months credit is allowed, sales would increase to R620 000 per month. An extra clerk to account for the new customers will be employed at R15 000 per annum. The finance director fears that extending sales credit will increase the bad debts suffered from 1% of sales to 2% of sales. He is also concerned about the overdraft limit, but the bank manager is very supportive of the scheme, offering extended overdraft facilities at 14% per annum. Evaluate the sales directors scheme. Also factor in the cost of carrying the debtors as part of your calculation. Perform these calculations based on yearly figures. (12) 5.2 List three (3) methods which may be used to ensure the proper control of accounts receivable