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6. Consider the Johnson Company. They had total sales, 40% cash and 60% on account, of $500,000 in October. The accounts receivable account had a
6. Consider the Johnson Company. They had total sales, 40% cash and 60% on account, of $500,000 in October. The accounts receivable account had a debit balance of $50,000 at the beginning of the month, a debit balance of $95,000 at the end of the month, and no write-offs during the month. The inventory was $120,000 (debit) at the beginning of the month, and $90,000 (debit) at the end of the month. Depreciation expense totaled $32,000 for the month. The cost of goods sold for October was $220,000. Accounts payable was $50,000 at the beginning of the month, and $60,000 at the end of the month. Cash was $120,000 at the start of the month, and $140,000 at the end of the month. a. What was the total cash received from customers in October? b. What was the total cash payments for purchases in October
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