A firm has an opening balance of receivables amounting to $10,000. During the year the firm has sales totalling $100,000. It writes off $3,000 in bad debts.

At year-end it is owed $8,000 by customers.

How much cash was received from receivables in the year?

1. $102,000
2. $105,000
3. $95,000
4. $99,000.

A company has a balance on its payables account of $6,000 at the start of the year. During the year it pays $59,000 and receives a discount amounting to $2,000. At year-end the company owes $7,000. What was the amount of purchases made on credit for the year?

1. $74,000
2. $62,000
3. $60,000
4. $58,000.