Category: Debtor

Provision for Bad Debts  100% of debtors are unlikely to pay the amount owed to the business. A % will not be collected/received Provision for

Bad Debt  Bad debt is amount owed to the business, that will not be collected/received Bad debt is shown under Expenses in the Income Statement

Debtor Schedule Debtor schedule usually prepared with the cash budget Debtor schedule shows R to be collected from debtors over the budgeted period Debtor schedule

Debtor Collection Period Collection Period = Debtors/Credit sales * 365 = number of days It shows the number of days from the sale until cash