You are provided with the following information: Sales for the year $400 000 Discounts provided during the year to customers for early payment $10 000 Doubtful debts expense for the year $5 000 Opening balance of accounts receivable $90 000 HI5020Tutorial T1 2021 Closing balance of accounts receivable $80 000 Opening balance of the provision for doubtful debts $9 000 Closing balance of the provision for doubtful debts $8 000 Cost of goods sold for the year $60 000 Purchases for the year (on credit terms) $80 000 Discounts received for early payment to suppliers $2 000 Stock write-offs owing to water damage caused by melting ice in the Antarctic $5 000 Opening balance of trade creditors $40 000 Closing balance of trade creditors $35 000 Opening balance of inventory $10 000 Closing balance of inventory $25 000 Required: Calculate the cash receipts from customers during the year. Calculate the cash payments to suppliers during the year.
You are provided with the following information:
|
Sales for the year |
$400 000 |
|
Discounts provided during the year to customers for early payment |
$10 000 |
|
Doubtful debts expense for the year |
$5 000 |
|
Opening balance of |
$90 000 |
HI5020Tutorial T1 2021
|
Closing balance of accounts receivable |
$80 000 |
|
Opening balance of the provision for doubtful debts |
$9 000 |
|
Closing balance of the provision for doubtful debts |
$8 000 |
|
Cost of goods sold for the year |
$60 000 |
|
Purchases for the year (on credit terms) |
$80 000 |
|
Discounts received for early payment to suppliers |
$2 000 |
|
Stock write-offs owing to water damage caused by melting ice in the Antarctic |
$5 000 |
|
Opening |
$40 000 |
|
Closing balance of trade creditors |
$35 000 |
|
Opening balance of inventory |
$10 000 |
|
Closing balance of inventory |
$25 000 |
Required:
Calculate the cash receipts from customers during the year.
Calculate the cash payments to suppliers during the year.
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