- This topic has 5 replies, 2 voices, and was last updated 6 years ago by
.
Viewing 6 posts - 1 through 6 (of 6 total)
- Posts
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,
VictorBecause 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.
Viewing 6 posts - 1 through 6 (of 6 total)
- The topic ‘Financial Accounting Exam’ is closed to new replies.