The Sales Journal for March 2017 was destroyed, but Washeed was able to provide the following information 2017 $ March 1 Debit balances in sales ledger 2,346 Credit balances in sales ledger 140 March 31 Totals for the month Cheques received from credit customers 2,145 Cheques paid to credit suppliers 3,013 Cheques received from credit customers (included In the cheques received) later dishonored 350 Discount allowed 55 Discount received 90 Returns by credit customers 276 Returns by credit suppliers 198 Contra entry 182 Bad debts written off 62 April 1 Debit balances in sales ledger 2,670 Credit balances in sales ledger 86 Required: Prepare the sales ledger control account for the month of March 2017.
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.
The Sales Journal for March 2017 was destroyed, but Washeed was able to provide the following information
2017 $
March 1 Debit balances in sales ledger 2,346
Credit balances in sales ledger 140
March 31 Totals for the month
Cheques received from credit customers 2,145
Cheques paid to credit suppliers 3,013
Cheques received from credit customers (included
In the cheques received) later dishonored 350
Discount allowed 55
Discount received 90
Returns by credit customers 276
Returns by credit suppliers 198
Contra entry 182
April 1 Debit balances in sales ledger 2,670
Credit balances in sales ledger 86
Required:
Prepare the sales ledger control account for the month of March 2017.
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