The following information relates to a business for the year ended 31 December 2019: Trade receivables at 1 January 2019 289,376 Trade payables at 1 January 2019 301,972 Discounts received 21,069 Cash sales 69,589 Cash from credit customers 795,373 Irrecoverable debts to be written off 9,550 Discounts allowed 12,956 Returns inwards 7,000 Amounts paid to suppliers 475,353 Returns outwards 3,525 Credit sales 626,575 Receivables to be allowed for (additional to those to be written off)9,527 What is the balance on the trade receivables ledger control account at 31 December 2019? A $81,545 B $91,072 C $104,028 D $101,501
The following information relates to a business for the year ended 31 December 2019: Trade receivables at 1 January 2019 289,376 Trade payables at 1 January 2019 301,972 Discounts received 21,069 Cash sales 69,589 Cash from credit customers 795,373 Irrecoverable debts to be written off 9,550 Discounts allowed 12,956 Returns inwards 7,000 Amounts paid to suppliers 475,353 Returns outwards 3,525 Credit sales 626,575 Receivables to be allowed for (additional to those to be written off)9,527 What is the balance on the trade receivables ledger control account at 31 December 2019? A $81,545 B $91,072 C $104,028 D $101,501
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
The following information relates to a business for the year ended 31 December 2019:
Trade receivables at 1 January 2019 289,376
Trade payables at 1 January 2019 301,972
Discounts received 21,069
Cash sales 69,589
Cash from credit customers 795,373
Irrecoverable debts to be written off 9,550
Discounts allowed 12,956
Returns inwards 7,000
Amounts paid to suppliers 475,353
Returns outwards 3,525
Credit sales 626,575
Receivables to be allowed for
(additional to those to be written off)9,527
What is the balance on the trade receivables ledger control account at 31 December 2019?
A $81,545
B $91,072
C $104,028
D $101,501
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education