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The debtors ageing schedule of three businesses is supplied as at the end of April 2021. All businesses have approximately the same (Rand) balance for
The debtors ageing schedule of three businesses is supplied as at the end of April 2021. All businesses have approximately the same (Rand) balance for accounts receivable. Days outstanding 0 - 15 16 - 30 31 - 60 60+ Total (R) Lex Rex Tex 500 699 455 200 499 650 680 500 450 600 905 000 150 336 352 650 258 500 286 301 400 890 1 617 836 1 659 340 1 663 150 The credit terms offered to the customers of Lex are: 2,5/15 net 30 The credit terms offered to the customers of Rex are: 2/15 net 30. The credit terms offered to the customers of Tex are: 4/30 net 60. REQUIRED: a) b) Calculate the percentage of the total for each period of days for all three businesses. (4) Analyse the three debtors ageing schedules and briefly explain what it indicates for each of the businesses. (5) Discuss four possible issues to be considered by each business by referring to the four specific focus areas of the credit policy. (4) [13] c)
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