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- This topic has 4 replies, 3 voices, and was last updated 3 years ago by John Moffat.
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- December 5, 2020 at 11:25 am #597740
Alpha’s first year of trading was 2014. Alpha is a sole trader who doesn’t keep proper accounting.
From reviewing Alpha’s bank statement and incomplete records related to cash the following has been seen
Bank and Cash summary, Alpha, 2014
Cash received from credit customers and paid to the bank 381600
Exp paid out of cash received from credit customer before banking 6800
cash sales 112900Other info, alfha, 2014
irrecoverable debts written off 7200
closing balance of receivables 0
What is alpha’s sales figure?Can you please elaborate on the solution? There is a direct answer given and im not sure how it was derived
December 7, 2020 at 12:10 am #597944I get the answer 493,300. Is this correct ?
December 7, 2020 at 8:47 am #597976The total cash received from credit customers was 381,600 + 6,800 = 388,400.
There were irrecoverable debts written off and therefore the total sales to credit customers must have been 388,400 + 7,200 = 395,600.In addition there were cash sales of 112,900, so the total sales must have been 395,600 + 112,900 = $508,500.
December 7, 2020 at 9:12 am #597981I did not include irrecoverable debt but I guess that is still included in the sales. Thanks John
December 7, 2020 at 9:27 am #597989You are welcome 🙂
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