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Required: Prepare the Cash Budget of X Traders for June and July 2022. (25) It is expected that debtors will settle their accounts as follows:
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Prepare the Cash Budget of X Traders for June and July 2022. (25)
It is expected that debtors will settle their accounts as follows: 20% in the month of sale
70% in the month after the month of sale, and 5% in the second month after the month of sale
The remaining 5% is usually written off as bad debts.
Trade creditors are paid in the month after the purchases at a discount of 5%.
50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred.
Expenses are paid as they arise.
The favorable bank balance on 1 May was R30 000.
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