The following information pertains to Napa Merchandising Company.

Instructions

(a) Calculate the amount of credit sales made during the year. 

(b) Calculate the balance of accounts receivable at the end of the year.

Transcribed Image Text:

Merchandise inventory at end of year $33,000 Accounts receivable at beginning of year Cash sales made during the year 24,000 18,000 Gross profit on sales 20,000 Accounts receivable written off during the year Purchases made during the year 1,000 60,000 Accounts receivable collected during the year Merchandise inventory at beginning of year 78,000 36,000