Brandy Ltd makes all of its sales on credit. Budgeted sales for the next two...
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Brandy Ltd makes all of its sales on credit. Budgeted sales for the next two four-week accounting periods are as follows. Period 5 300,000 Period 6 180,000 Invoicing occurs once per fortnight at the middle and end of each accounting period. At each date one half of the period's sales are invoiced. Terms of sale are that payment is due within four weeks of invoicing. A 1.5% discount is allowed and taken by customers if they make payment within one week of the invoice being raised. As a result 40% (by gross value) of invoices are settled within one week. There are no bad debts or late payers. Which of the following is the budgeted value of cash receipts from customers in period 6? A. 273,210 B. 274,560 C. 275,100 D. 276,000
Brandy Ltd makes all of its sales on credit. Budgeted sales for the next two four-week accounting periods are as follows.
Period 5 300,000
Period 6 180,000
Invoicing occurs once per fortnight at the middle and end of each accounting period. At each date one half of the period's sales are invoiced. Terms of sale are that payment is due within four weeks of invoicing. A 1.5% discount is allowed and taken by customers if they make payment within one week of the invoice being raised. As a result 40% (by gross value) of invoices are settled within one week. There are no bad debts or late payers.
Which of the following is the budgeted value of cash receipts from customers in period 6?
A. 273,210 B. 274,560 C. 275,100
D. 276,000
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