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Dear sir pls help me
At 31 March the balance sheet of a company included the following.
trade Receivable 23 000 Allowance for receivables 1 200
During April credit sales were $64 000 and cash sales were $256 000. Credit customers paid $56 840 net of a 2% cash discount.What will be the trade receivable at 30 April?
My answer was 30160 but in the book it says 29000?Receivables will be 23,000 + 64,000 – (56,840 x 100/98) = 29,000.
(Since the discount is 2%, for every 100 owed they will only have paid 98. Therefore the receivables they were paying for will be 100/98 x 56,840.)
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