CAF-1 · Chapter 12 · Question 7 of 15
A trader’s opening trade receivables were Rs. 200,000 and closing trade receivables were Rs. 300,000. During the year, cash received from customers amounted to Rs. 1,000,000. Assuming no bad debts, what was the value of credit sales?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 1,100,000
Explanation
Using the receivables control account: Cash Received (1,000,000) + Closing Receivables (300,000) - Opening Receivables (200,000) = Credit Sales of Rs. 1,100,000.
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