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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
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 Opening balance of accounts receivable $90 000 Closing balance of accounts receivable $80 000 Opening balance of the provision for doubtful debts $9 000 Closing balance of the provision for doubtful debts $8 000 Cost of goods sold for the year $60 000 Purchases for the year (on credit terms) $80 000 Discounts received for early payment to suppliers $2 000 Stock write-offs owing to water damage caused by melting ice in $5 000 the Antarctic Opening balance of trade creditors $40 000 Closing balance of trade creditors $35 000 Opening balance of inventory $10 000 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)
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