Question
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 the Antarctic | $5 000 |
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:
- Calculate the cash receipts from customers during the year. (3.5 marks)
Calculate the cash payments to suppliers during the year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started