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Module 1: Budgeting

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What strategies can a business employ to improve debt collection?

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XSIQ
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Accounting - What strategies can a business employ to improve debt
collection?

What strategies can a business employ to improve debt collection?

What is more important than the actions stated above is to carefully
monitor potential credit customers to avoid 'credit risk'.

Having a good relationship with credit customers may help to minimise the
need for the less pleasant strategies listed above.

All sales on credit are collected as follows:

* 50% in the month following sale

* 30% in the second month

* 20% in the third month

Complete the table showing cash received in the months of October,
November and December.

MONTH
CREDIT SALES
OCTOBER
NOVEMBER
DECEMBER

August
30 000

September
40 000

8 000

October
60 000

November
50 000

December
70 000

TOTAL

View the text document for solution to calculating receipts from debtors.

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