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Receivables at 1/1/20X3 10000$
Receivables 31/12/20X3 9000$
Total receipts during 20X3 (including 5000$ cash sales) 85000$What was the sales revenue figure for 20X3?
The given answer says 84000$
And the calculation is Total receipts 85000 + C/F 31/12/20X3 9000 = 94000$
940000 – 10000 = 84000My question is, why is the whole amount of receipts included on the trade receivables T account even though it includes cash sales?
Why have you asked this in the F2 forum? It is only relevant for Paper F3 🙂
You will get the same answer even if you treat the cash sales separately.
If you ignore initially the cash sales, then the credit sales are 80,000 + 9,000 – 10,000 = 79,000.
In addition there are cash sales of 5,000.
So the total sales revenue is 79,000 + 5,000 = 84,000.
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