ACCA FA · Chapter 3 · Question 7 of 10
A customer's account in the receivables ledger had an opening debit balance of $1,200. During the month, credit sales of $4,500 were made to the customer, the customer paid $3,800, and goods worth $350 were returned by the customer. What is the closing balance on the account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $1,550 debit
Explanation
Closing balance = $1,200 + $4,500 - $3,800 - $350 = $1,550 debit. Ignoring the returns gives $1,900, adding the returns instead of deducting them gives $2,250, and omitting the opening balance gives $350.
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