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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 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:

  1. Calculate the cash receipts from customers during the year. (3.5 marks)
  2. Calculate the cash payments to suppliers during the year. (3.5 marks)

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