CIMA BA3 · Chapter 3 · Question 6 of 10
The receivables account of a business showed an opening debit balance of $4,200. During the month credit sales were $18,600, cash received from credit customers was $15,900 and an irrecoverable debt of $700 was written off. What is the closing balance on the account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $6,200 debit
Explanation
Debits: opening balance $4,200 + credit sales $18,600 = $22,800. Credits: cash received $15,900 + irrecoverable debt $700 = $16,600. Closing debit balance = $22,800 - $16,600 = $6,200.
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