Zeinep Limited makes cash and credit sales to customers. The sales budget shows total sales for April, May, June and July 2021 of £100,000, £125,000, £140,000 and £150,000 respectively. 20% of budgeted sales in each month will be for cash. The other 80% of budgeted sales will be on credit. Of the credit sales, 50% are expected to pay in the month after the month of sale, 35% are expected to pay two months after the month of sale and 15% are expected to pay three months after the month of sale. What is the figure for trade receivables that should appear in Zeinep Limited's budgeted statement of financial position at 31 July 2021?

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The Answer of Zeinep Limited makes cash and credit sales to customers. The sales budget shows total sales for April, May, June and July 2021 of £100,000, £125,000, £140,000 and £150,000 respectively. 20% of budgeted sales in each month will be for cash. The other 80% of budgeted sales will be on credit. Of the credit sales, 50% are expected to pay in the month after the month of sale, 35% are expected to pay two months after the month of sale and 15% are expected to pay three months after the month of sale. What is the figure for trade receivables that should appear in Zeinep Limited's budgeted statement of financial position at 31 July 2021?

Zeinep Limited Makes Cash and Credit Sales to Customers