A receivables ledger control account at 1 may had balance of $ 32,750 debit and $ 1,275 credit.During May, sales of $125,000 were made on credit.Receipts from customers amounted to $122,500 and cash discounts of $550 were allowed.Refunds of $ 1,300 were made to customers.
What should the closing balances at 31 may amounted to?
A.$ 35,175 debit and $3,000 credit
B. $ 36,675 debit and $2,500 credit
C. $ 36,725 debit and $2,000 credit
D. $ 36,725 debit and $1,000 credit
Please show all the calculations!
Sorry. Doesn’t make any sense to me.
do you really know what it means by Receivable Account ????,,,please understand the terminology and definition in accounting first so that you know what are you talking about
DR:Bals b/d $32,750, Sales $125,000,Refund $1,300 so Bals c/d $2000.
CR:Bals b/d $1,275, Cash $122,500,Discount allowed $550 so Bals c/d $36,725.
Bals b/d $36,725 DR
Bals b/d $2,000 CR
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