Consider the following facts: (a) Beginning and ending Accounts receivable are $20,000 and $24,000, respectively. Credit sales

Question:

Consider the following facts:
(a) Beginning and ending are $20,000 and $24,000, respectively. Credit sales for the period total $62,000.
(b) Cost of goods sold is $76,000. Beginning Inventory balance is $27,000, and balance is $22,000. Beginning and ending are $14,000 and $9,000, respectively.
Requirements
1. Compute cash collections from customers.
2. Compute cash payments for inventory.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...