ACCA FA · Chapter 11 · Question 9 of 12
A business does not keep a full set of records. Receivables were $18,400 at the start of the year and $21,300 at the end. During the year, cash received from customers was $164,500, irrecoverable debts of $1,200 were written off, and discounts allowed were $900. What were the credit sales for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $169,500
Explanation
Using the receivables account: credit sales = closing receivables + cash received + irrecoverable debts + discounts allowed - opening receivables = $21,300 + $164,500 + $1,200 + $900 - $18,400 = $169,500. Ignoring the write-offs and discounts gives $167,400.
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