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– receivables at 1 Jan 2013 is $10,000
– receivables at 31 Dec 2013 is $9,000
– total receipts during 2013 (including cash sales of $5,000 was $85,000
Q> what is the sales revenue figure for 2013?
My question: why is the cash receipt (from trade receivables so credit sales) recorded as $85,000 and not $80,000 ($85,000 – $5,000)?
surely the cash sales should not be part of the credit sales?
By all means calculate the credit sales based on the 80,000 received, and then add on the cash sales to get the total sales revenue.
You will get the same answer.
(I assume that you did attempt it yourself before looking at the answer?)