You are provided with the following information: Sales for the year Discounts provided during the year to customers for early payment Doubtful debts expense for the year Opening balance of accounts receivable Closing balance of accounts receivable Opening balance of the provision for doubtful debts Closing balance of the provision for doubtful debts Cost of goods sold for the year Purchases for the year (on credit terms) Discounts received for early payment to suppliers Stock write-offs owing to water damage caused by melting ice in the Antarctic $400 000 $10 000 $5 000 $90 000 $80 000 $9 000 $8 000 $60 000 $80 000 $2 000 $5 000 Page 2 of 5 Opening balance of trade creditors Closing balance of trade creditors Opening balance of inventory Closing balance of inventory $40 000 $35 000 $10 000 $25 000 Required: (a) Calculate the cash receipts from customers during the year. (b) Calculate the cash payments to suppliers during the year!

You are provided with the following information: Sales for the year Discounts provided during the year to customers for early payment Doubtful debts expense for the year Opening balance of accounts receivable Closing balance of accounts receivable Opening balance of the provision for doubtful debts Closing balance of the provision for doubtful debts Cost of goods sold for the year Purchases for the year (on credit terms) Discounts received for early payment to suppliers Stock write-offs owing to water damage caused by melting ice in the Antarctic $400 000 $10 000 $5 000 $90 000 $80 000 $9 000 $8 000 $60 000 $80 000 $2 000 $5 000 Page 2 of 5 Opening balance of trade creditors Closing balance of trade creditors Opening balance of inventory Closing balance of inventory $40 000 $35 000 $10 000 $25 000 Required: (a) Calculate the cash receipts from customers during the year. (b) Calculate the cash payments to suppliers during the year!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $4,139. If Allowance for Doubtful Accounts has a $1,071 debit balance, the adjustment to record the bad debt expense for the period will require a Select the correct answer. debit to Bad Debt Expense for $1,071. debit to Bad Debt Expense for $5,210. credit to Allowance for Doubtful Accounts for $4,139. debit to Bad Debt Expense for $4,139.
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