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Kindly help with this question
At the beginning of the firm’s financial year debtors were 2100 & at the year end were 100 higher. During the year receipts from trade customers 10,000, bad debts 450, increase in provision for bad debts 100 & cash sales 250. What was the total sale during the year?
A- 8700 B- 10,450 C- 10,800 D- 10,650
The answer is C
If you prepare a receivables account, the opening balance is 2100. Debit with credit sales – missing figure. Credit with cash received – 10000. Credit with irrecoverable debts – 450. Closing balance – 2200.
The missing figure for credit sales is 10550.
Add the cash sales of 250.
Total sales – 10800
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