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Hi, Sir
The recievable ledger a count At 1 may had balance of 32,750 debit and 1,275 credit . During may sales of 125,000 were made on credit. Reciepts from recievable amounted to $122,500 and cash discounts of $550 were allowed refunds of $ 1,300 were made of customers.
The closing balances at 31 May could be
A. $35,175 debit and 3,000 credit
B $35,675 debit and $ $2,500credit
C $36,725 debit and 2,000 credit
D $36,725 debit and 1,000 credit
How to calculate the closing balance and how to prepare the recievable ledger accontBring forward the balances given on 1 May.
Debit with the sales
Credit with the cash received
Credit with the discounts
Debit with the refunds.Then calculate the closing balance.
Only one of the 4 choices will give the same net figure for the closing balance.
(Does the book in which you found this question not also have an answer with workings? 🙂 )
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