In exercise 15.1 i got the answer $79000 but it is not clear when i think about it. Why did $10000 was deduced from $80000 and $9000 was added.
In exercise 15.20 part 2 of the question deals with settlement discount.the settlement discount does not affect the amount credited in RLCA when cash is received. So why was $12500 deduced ?
15.1 The closing receivables = opening receivables + credit sales – cash received.
We know the opening and closing receivables and we know the cash received. So the credit sales are the missing figure.
15.20 The implication in the question is that although the discount was not expected to be taken when the invoice was issued (and so was not entered in the account at that time), it has since been taken when payment was made.
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