5.1 Debtor's Collection Schedule for July and August
What are the steps to compile the debtor's collection schedule for July and August based on the given information for Conlog Enterprises?
Debtor's Collection Schedule Calculation:
May Sales:
- 40% of May sales are collected 30 days after the sale with a 5% discount.
- 60% of May sales are collected 60 days after the sale.
Calculation:
40% x 7,000 units x R60 x (1 - 0.05) = R168,000
60% x 7,000 units x R60 = R252,000
June Sales:
- 40% of June sales are collected 30 days after the sale with a 5% discount.
- 60% of June sales are collected 60 days after the sale.
Calculation:
40% x 8,200 units x R60 x (1 - 0.05) = R197,520
60% x 8,200 units x R60 = R295,200
Debtor's Collection Schedule:
July:
- Collections from May sales (30 days after sale): R168,000
- Collections from June sales (30 days after sale): R197,520
Total collections for July: R365,520
August:
- Collections from May sales (60 days after sale): R252,000
- Collections from June sales (60 days after sale): R295,200
Total collections for August: R547,200