CIMA BA3 · Chapter 11 · Question 4 of 12
Trade receivables were $7,300 at the start of the year and $9,100 at the end. During the year cash received from credit customers was $84,600 and an irrecoverable debt of $500 was written off. What were credit sales for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $86,900
Explanation
Using a receivables account: credit sales = closing receivables + cash received + irrecoverable debts - opening receivables = $9,100 + $84,600 + $500 - $7,300 = $86,900.
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