Financial Accounting Exam

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April 16, 2020 at 8:17 pm #568476
victorwilson
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Hi Mr. John
Need your help for some question to be solved, Regards Victor
April 17, 2020 at 9:42 am #568507
John Moffat
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What is the question?!
April 17, 2020 at 11:58 am #568521
victorwilson
Participant
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You are given the following information:
Receivables at 1 January 20X3 $10,000
Receivables at 31 December 20X3 $9,000
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 (2 m
ANS: Credit sales = $80,000 – $10,000 + $9,000 = $79,000.
How then correct answer is 79000/- why minus 10000
Appreciate your help
Regards,
Victor
April 17, 2020 at 2:43 pm #568607
John Moffat
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Because 10,000 of the amount received this year will be for the amount owing at the start of the year – not for this years sales.
April 18, 2020 at 11:55 am #568649
victorwilson
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Thank you ,
April 18, 2020 at 3:57 pm #568690
John Moffat
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You are welcome 🙂
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