Debtors Collection Schedule for VUT Manufacturer

What is the debtors collection schedule for May and June for VUT Manufacturer?

Based on the summary of VUT Manufacturer's transactions for March, April, May, and June 2023, what are the debtors collection schedule for May and June?

Debtors Collection Schedule for May and June

The debtors collection schedule for VUT Manufacturer for May is R70,000 and for June is R50,000, which corresponds to the credit sales made in these months.

Debtors collection schedule refers to the amount that a company expects to collect from its debtors based on credit sales made in specific months. In the case of VUT Manufacturer, the debtors collection schedule for May and June can be calculated from the credit sales figures provided in the transaction summary.

For May, the total credit sales were R70,000, indicating that VUT Manufacturer expects to collect R70,000 from debtors in that month. Similarly, for June, the total credit sales were R50,000, meaning the anticipated debtors collection for June is R50,000.

Understanding the debtors collection schedule is crucial for managing cash flow and tracking the amount of revenue expected to be received from customers who purchased goods on credit. By analyzing this schedule, companies like VUT Manufacturer can better plan their financial activities and ensure steady cash inflows.