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)
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