The following information pertains to Sosa Merchandising Company.

Instructions

(a) Calculate the amount of credit sales made during the year. (Hint: You will need to use income statement relationships—introduced in Chapter 5—in order to determine this.)

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

Transcribed Image Text:

Merchandise inventory at end of year Accounts receivable at beginning of year Cash sales made during the year Gross profit on sales Accounts receivable written off during the year Purchases made during the year Accounts receivable collected during the year Merchandise inventory at beginning of year $33,000 24.000 18,000 25,000 1,000 60,000 78,000 36,000