PRC-1 · Chapter 5 · Question 67 of 100
Opening receivables were Rs. 175,000. Credit sales were Rs. 386,000. Cash collected was Rs. 356,000. Bad debts written off were Rs. 6,000. Sales returns were Rs. 4,000. Discount allowed was Rs. 6,000. What is the closing GROSS Receivables balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 189,000
Explanation
Closing Gross Receivables = Opening (175,000) + Credit Sales (386,000) - Cash Collected (356,000) - Bad Debts (6,000) - Returns (4,000) - Discount Allowed (6,000) = Rs. 189,000.
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