Question 3 (7 marks) You are provided with the following information: Sales for the year $400 000 Discounts provided during the year to customers for early payment $10 000 Doubtful debts expense for the year $5 000 $90 000 Opening balance of accounts receivable Closing balance of accounts receivable Opening balance of the provision for doubtful debts Closing balance of the provision for doubtful debts $80 000 $9000 $8000 $60 000 Cost of goods sold for the year Purchases for the year (on credit terms) Discounts received for early payment to suppliers $80 000 $2 000 Stock write-offs owing to water damage caused by melting ice in $5 000 the Antarctic $40 000 Opening balance of trade creditors Closing balance of trade creditors $35 000 $10 000 Opening balance of inventory Closing balance of inventory $25 000 Required: (a) Calculate the cash receipts from customers during the year. (3.5 marks) (b) Calculate the cash payments to suppliers during the year. (3.5 marks) ANSWER (a)