E2-37. (Learning Objective 5: Computing financial statement amounts) The manager of Pierce Furniture needs to compute the following amounts:

a. Total cash paid during October.

b. Cash collections from customers during October. Analyze Accounts Receivable.

c. Cash paid on a note payable during October. Analyze Notes Payable.

Here’s the additional data you need to analyze the accounts:

Requirement 1. Prepare a T-account to compute each amount, a through c.

Account 1. Cash..... 2. Accounts Receivable....... 3. Notes Payable. Balance Sep 30 Oct 31 Additional Information for the Month of October $ 12,000 27,500 $ 6,000 16,100 26,000 23,000 Cash receipts, $ 85,000 Sales on account, $ 50,000 New borrowing, $ 15,000