Consider the following facts: a. Beginning and ending Accounts Receivable are $ 20,000 and $ 24,000, respectively.

Question:

Consider the following facts:

a. Beginning and ending Accounts Receivable are $ 20,000 and $ 24,000, respectively. Credit sales for the period total $ 62,000.

b. Cost of goods sold is $ 76,000.

c. Beginning Merchandise Inventory balance is $ 27,000, and ending Merchandise Inventory balance is $ 22,000.

d. Beginning and ending Accounts Payable are $ 14,000 and $ 9,000, respectively.

Requirements

1. Compute cash collections from customers.

2. Compute cash payments for merchandise inventory.

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...