- This topic has 3 replies, 2 voices, and was last updated 11 years ago by
.
-
Posts
-
Dear John,
You are given the following information:
Receivables at 1 January 20X3. 10,000
Receivables at 31 December 20X3. 9000
Total receipts during 20X3 (including cash sales of $5,000). 85,000
What are sales on credit during 20X3?
A $81,000
B $86,000
C $79,000
D $84,000
Answer is : 80,000+9,000-10,000Why we minus 10,000 as it is also a receivable .
The balance at the end of the year is as follows:
10000 (balance at start) + Sales on credit – 80000 (cash received from credit sales).
We know that this is equal to 9000 from the question.
So…10000 + sales – 80000 = 9000
Sales = 79000(If it helps, then do a t-account and fill in the missing figure)
Yes, it helps and I did t- account as well. Thank you so much. I really appreciate your help. So kind of you.
- You must be logged in to reply to this topic.