ICAEW AF · Chapter 12 · Question 9 of 11
A trader does not keep full records. Trade receivables were £6,800 at the start of the year and £7,950 at the end. During the year £92,400 was received from credit customers and debts of £600 were written off as irrecoverable. What were the credit sales for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) £94,150
Explanation
Reconstruct the receivables account: opening £6,800 + credit sales = cash received £92,400 + irrecoverable debts £600 + closing £7,950. Credit sales = £92,400 + £600 + £7,950 - £6,800 = £94,150.
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