Answer :
To create a Debtors Collection Schedule for the three-month period from 1 October 20.7 to 31 December 20.7, we need to follow the sales and collection pattern given. Below are the detailed steps and calculations necessary to determine the expected collections from debtors for each month:
### Step-by-Step Solution:
1. Identify Sales:
We have the total sales for July, August, September, October, November, and December:
- July: R12,000
- August: R16,000
- September: R12,000
- October: R12,000
- November: R20,000
- December: R8,000
2. Determine Credit Sales:
Cash sales are 25% of total sales. Therefore, credit sales constitute 75% of total sales.
[tex]\[ \text{Credit Sales} = \text{Total Sales} \times 75\% \][/tex]
For each month:
- July Credit Sales: [tex]\( 12,000 \times 0.75 = R9,000 \)[/tex]
- August Credit Sales: [tex]\( 16,000 \times 0.75 = R12,000 \)[/tex]
- September Credit Sales: [tex]\( 12,000 \times 0.75 = R9,000 \)[/tex]
- October Credit Sales: [tex]\( 12,000 \times 0.75 = R9,000 \)[/tex]
- November Credit Sales: [tex]\( 20,000 \times 0.75 = R15,000 \)[/tex]
- December Credit Sales: [tex]\( 8,000 \times 0.75 = R6,000 \)[/tex]
3. Collection Pattern:
- 50% pay one month after the sale (with a 5% discount)
- 30% pay two months after the sale
- 15% pay three months after the sale
- 5% are written off and never pay
Therefore, the payment amounts collected for each month should be adjusted considering the discount for early payment.
4. Calculating Collections for a Specific Month:
### Collections Schedule:
October:
- Collections from September (50% with 5% discount):
[tex]\[ 9,000 \times 0.50 \times 0.95 = R4,275 \][/tex]
- Collections from August (30%):
[tex]\[ 12,000 \times 0.30 = R3,600 \][/tex]
- Collections from July (15%):
[tex]\[ 9,000 \times 0.15 = R1,350 \][/tex]
[tex]\[ \text{Total Collections for October} = 4,275 + 3,600 + 1,350 = R 9,225 \][/tex]
November:
- Collections from October (50% with 5% discount):
[tex]\[ 9,000 \times 0.50 \times 0.95 = R4,275 \][/tex]
- Collections from September (30%):
[tex]\[ 9,000 \times 0.30 = R2,700 \][/tex]
- Collections from August (15%):
[tex]\[ 12,000 \times 0.15 = R1,800 \][/tex]
[tex]\[ \text{Total Collections for November} = 4,275 + 2,700 + 1,800 = R 8,775 \][/tex]
December:
- Collections from November (50% with 5% discount):
[tex]\[ 15,000 \times 0.50 \times 0.95 = R7,125 \][/tex]
- Collections from October (30%):
[tex]\[ 9,000 \times 0.30 = R2,700 \][/tex]
- Collections from September (15%):
[tex]\[ 9,000 \times 0.15 = R1,350 \][/tex]
[tex]\[ \text{Total Collections for December} = 7,125 + 2,700 + 1,350 = R11,175 \][/tex]
Now, we can create the Debtors Collection Schedule:
[tex]\[ \begin{array}{|c|c|c|c|} \hline \text{Month} & \text{From July Sales (R)} & \text{From August Sales (R)} & \text{From September Sales (R)} & \text{From October Sales (R)} & \text{From November Sales (R)} & \text{Total Collections (R)} \\ \hline \text{October} & \text{1,350} & \text{3,600} & \text{4,275} & 0 & 0 & \text{9,225} \\ \hline \text{November} & 0 & \text{1,800} & \text{2,700} & \text{4,275} & 0 & \text{8,775} \\ \hline \text{December} & 0 & 0 & \text{1,350} & \text{2,700} & \text{7,125} & \text{11,175} \\ \hline \end{array} \][/tex]
### Final Result:
- October Collections: R9,225
- November Collections: R8,775
- December Collections: R11,175
This table shows the amount collected from debtors for each month in the specified period.
### Step-by-Step Solution:
1. Identify Sales:
We have the total sales for July, August, September, October, November, and December:
- July: R12,000
- August: R16,000
- September: R12,000
- October: R12,000
- November: R20,000
- December: R8,000
2. Determine Credit Sales:
Cash sales are 25% of total sales. Therefore, credit sales constitute 75% of total sales.
[tex]\[ \text{Credit Sales} = \text{Total Sales} \times 75\% \][/tex]
For each month:
- July Credit Sales: [tex]\( 12,000 \times 0.75 = R9,000 \)[/tex]
- August Credit Sales: [tex]\( 16,000 \times 0.75 = R12,000 \)[/tex]
- September Credit Sales: [tex]\( 12,000 \times 0.75 = R9,000 \)[/tex]
- October Credit Sales: [tex]\( 12,000 \times 0.75 = R9,000 \)[/tex]
- November Credit Sales: [tex]\( 20,000 \times 0.75 = R15,000 \)[/tex]
- December Credit Sales: [tex]\( 8,000 \times 0.75 = R6,000 \)[/tex]
3. Collection Pattern:
- 50% pay one month after the sale (with a 5% discount)
- 30% pay two months after the sale
- 15% pay three months after the sale
- 5% are written off and never pay
Therefore, the payment amounts collected for each month should be adjusted considering the discount for early payment.
4. Calculating Collections for a Specific Month:
### Collections Schedule:
October:
- Collections from September (50% with 5% discount):
[tex]\[ 9,000 \times 0.50 \times 0.95 = R4,275 \][/tex]
- Collections from August (30%):
[tex]\[ 12,000 \times 0.30 = R3,600 \][/tex]
- Collections from July (15%):
[tex]\[ 9,000 \times 0.15 = R1,350 \][/tex]
[tex]\[ \text{Total Collections for October} = 4,275 + 3,600 + 1,350 = R 9,225 \][/tex]
November:
- Collections from October (50% with 5% discount):
[tex]\[ 9,000 \times 0.50 \times 0.95 = R4,275 \][/tex]
- Collections from September (30%):
[tex]\[ 9,000 \times 0.30 = R2,700 \][/tex]
- Collections from August (15%):
[tex]\[ 12,000 \times 0.15 = R1,800 \][/tex]
[tex]\[ \text{Total Collections for November} = 4,275 + 2,700 + 1,800 = R 8,775 \][/tex]
December:
- Collections from November (50% with 5% discount):
[tex]\[ 15,000 \times 0.50 \times 0.95 = R7,125 \][/tex]
- Collections from October (30%):
[tex]\[ 9,000 \times 0.30 = R2,700 \][/tex]
- Collections from September (15%):
[tex]\[ 9,000 \times 0.15 = R1,350 \][/tex]
[tex]\[ \text{Total Collections for December} = 7,125 + 2,700 + 1,350 = R11,175 \][/tex]
Now, we can create the Debtors Collection Schedule:
[tex]\[ \begin{array}{|c|c|c|c|} \hline \text{Month} & \text{From July Sales (R)} & \text{From August Sales (R)} & \text{From September Sales (R)} & \text{From October Sales (R)} & \text{From November Sales (R)} & \text{Total Collections (R)} \\ \hline \text{October} & \text{1,350} & \text{3,600} & \text{4,275} & 0 & 0 & \text{9,225} \\ \hline \text{November} & 0 & \text{1,800} & \text{2,700} & \text{4,275} & 0 & \text{8,775} \\ \hline \text{December} & 0 & 0 & \text{1,350} & \text{2,700} & \text{7,125} & \text{11,175} \\ \hline \end{array} \][/tex]
### Final Result:
- October Collections: R9,225
- November Collections: R8,775
- December Collections: R11,175
This table shows the amount collected from debtors for each month in the specified period.
