Chapter 2, Problem 2.68CEP

(Learning Objective 5: Analyzing accounts) The manager of West Industries Furniture needs to compute the following amounts:

1. a. Total cash paid during December.
2. b. Cash collections from credit customers during December. Analyze Accounts Receivable.
3. c. Cash paid on a note payable during December. Analyze Notes Payable.

Here's the additional data you need to analyze the accounts:

Balance			Additional Information for the Month of December
Account	Nov 30	Dec 31
1. Cash...............................	$14,500	$ 7,250	Cash receipts, $99,000
2. Accounts Receivable.......	29,000	27,000	Sales on account, $49,000
3. Notes Payable................	15,500	23,500	New borrowing, $28,000

Requirement

1. 1. Prepare a T-account to compute each amount, a through c.