Accounting GR 11 Term 3 Week 5
Accounting GR 11 Term 3 Week 5
Accounting GR 11 Term 3 Week 5
Introduction
ACTIVITY 1
The information relates to eWallet Traders for March, April and May 2020.
REQUIRED
Prepare the Debtors Collection Schedule the budgeting period 1 March 2020 to 31 May 2020.
INFORMATION
A Credit Sales totals
Actual Budgeted
January 64 000
February 66 000
March 78 000
April 120 000
May 48 000
January 64 000
February 66 000
March 78 000
May 48 000
TOTALS
SOLUTION
East Traders
Debtors Collection Schedule for the period 1 March 2020 to 30 April 2020
Months Credit sales March April Bad debts
X 15% X 5%
January 2020 180 000 27 000 9 000
X 30% X 15% X 5%
February 2020 160 000 48 000 24 000 8 000
([200 000 x 50%] x 95%) X 30%
March 2020 200 000 95 000 60 000
B. Debtors’ collection
In the past, debtors have settled their accounts as follows:
• 20% of debtors settle accounts in the month of the sale to receve 5% discount.
• 30% settle in the 1st month following the sales month (30 days).
• 40% settle in the 2nd month (60 days).
• 10% is written off in the 3rd month (90 days).
Nov 2019
Dec 2019
Jan 2020
Feb 2020
Mar 2020
TOTALS
Lesson Solution
https://wcedeportal.co.za/eresource/135116