QUESTION 5 - (5 marks)

Answer each part independently.

1. The sales for an organisation within an accounting period were $340 000, opening accounts receivable was $40 000, and closing accounts receivable was $15 000. There were no doubtful debts expenses for the period. All sales are made on credit terms, meaning there were no cash sales. How much cash was actually received from customers within the accounting period? (2.5 marks)

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2. Sunshine Beach Ltd started the accounting period with a liability for accrued wages of $50 000. Wages expense for the year was $780 000 and the closing balance of accrued wages was $65 000. How much cash was paid to employees? (2.5 marks)

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