Question
Question 3: (10 marks) Mr. Brown, a sole trader, has provided the following information for the year ended 31 December 2021: Rs Opening receivables debit
Question 3: (10 marks) Mr. Brown, a sole trader, has provided the following information for the year ended 31 December 2021: Rs Opening receivables debit balances 211,250 Opening receivables credit balances 1,750 Sales (90% credit, 10% cash) 1,110,500 Credit sales returns 17,130 Cash received from customers (95% from credit customers) 895,400 Irrecoverable debts 17,700 Irrecoverable debts previously written off recovered (these funds have been included in cash receipts above) 2,310 Opening allowance for receivables 13,320 Contra entry with balances on payables ledger 5,970 Closing receivables credit balances 980 Required: Using a receivables control account, compute the closing receivables amount for Mr. Brown as at 31 December 2021. 10 Marks
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