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The following balances relate to Putney:
Receivables at 1.1.08————————34,500
Cash received from credit customers—229,900
Contra with payables————————-1,200
Discounts allowed—————————-17,890
Cash sales————————————-24,000
Irrecoverable debts————————–18,600
Increase in allowance for receivables—12,500
Discounts received—————————15,670
Receivables at 31.12.08——————–45,000What is the revenue figure reported by Putney in the year ended 31 Dec 2008?
A. $275,870
B. $278,090
C. $290,590
D. $302,090As I wrote in answer to the first of your questions, you must not simply set test questions.
You must have an answer in your book (unless it is homework and we are certainly not here to do homework 🙂 )Please watch our free lectures and then if you still have a problem then ask about the specific problem you have with the printed answer.
My question is that why is cash received + contra + Discounts allowed + bad debts + balance c/f – opening receivables considered as the credit sale?
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