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Please help me with this question below
Ben Co has opening trade receivables of $102,189 and closing trade receivables of $212,417. Sales made on credit totalled $554,367. Total cash received from customers during the period was $653,159.
How much were cash sales for the period?In future you must ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other 🙂
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers.
If you write up a receivables t-account then you will find that the cash received from credit sales must be 554,367 + 102,189 – 212,417 = $444,139.
You know how much the total cash received was, and so the cash sales must be the difference.
Sorry, for my mistakes, I just open for myself this forum
I have answer options :
?)88294
b)763387
c)110228
d)308750
But they dont match with your answerEither you have mistyped one of the figures in the question or there is a mistake in your book.
The correct answer on what you typed is 653,159 – 444,139 = 209,020.If it is a question from the BPP Revision Kit then tell me the number of the question so I can check it for myself.
I tried to understand and solved it by myself,
i got the same answer with John second post which is
Cash Sales = $209020Ben Co has opening trade receivables of $102,189 and closing trade receivables of $212,417. Sales made on credit totalled $554,367. Total cash received from customers during the period was $653,159.
How much were cash sales for the period?Total credit sales of the month is $554,367
but the receivable balance increased only $212,417 – $102,189 = $110,288 ,
that’s means some customer must be bought and paid in the smae month.
$554,367 – $110,228 = $444,139 ( Credit sales of the month paid before account closing )The total cash received ( Cash related only to Sales )
from customer of the month is $653,159,
from the last calculatiion we known that,
part of the $653,159 must be the payment for receivable which is $444,139.Therefore ,
$653,159 – $444,139 = $209,020
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