Mr. Brown, a sole trader, has provided the following information for the year ended 31 December 2021:
Question:
Mr. Brown, a sole trader, has provided the following information for the year ended 31 December 2021:
Rs
Opening receivables debit balances 211,250
Opening receivables credit balances 1,750
Sales (90% credit, 10% cash) 1,110,500
Credit sales returns 17,130
Cash received from customers (95% from credit customers) 895,400
Irrecoverable debts 17,700
Irrecoverable debts previously written off recovered (these funds have been included in cash receipts above) 2,310
Opening allowance for receivables 13,320
Contra entry with balances on payables ledger 5,970
Closing receivables credit balances 980
Required:
Using a receivables control account, compute the closing receivables amount for Mr. Brown as at 31 December 2021.
Basic Business Statistics Concepts and Applications
ISBN: 978-0132168380
12th edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel