Calculating accounts receivable (debtors)

When we sell something on credit, the credit portion is in the balance sheet under ‘Accounts Receivable’ or ‘Debtors’.

For example, if credit sales are made in January with a 60-day payback period, they would be recorded in our ‘Debtors’ account in January, but only be paid (released) in March, and so on.

We will create the following variables:

credits is the credit sales in the month (60%) debtors to be calculated as the credits for the current month, plus the credits of the month before, minus the credits of two months before (as we assume the credits from 2 months ago or 60 days, will be repaid by then).

We have set an index for the variable month. The month value is set at 0.

Create a sales list with the USD sales forecast for Jan, Feb, and March, respectively: [500, 350, 700].
Create a blank credits list and blank debtors list.
The sales mix is 40% cash, and 60% credit, with a payment period of 60 days. We are going to append the credits list with the values within the sales list (set to variable mvalue) multiplied by 0.6.
If month is >0 in the index, then append the debtors as current month credits plus credits of prior month.

Take Hint (-30 XP)

Exercise

Calculating accounts receivable (debtors)

Instructions