Question

Given the following information:

Accounts Receivable at 1 July 2017	30,000
Accounts Receivable at 30 June 2018	27,000
Receipts on account for the year to 30 June 2018	98,000

Calculate Credit Sales for the year to 30 June 2018:

Do not use any punctuation or symbols in the answer.

Answer:

Part B

Select the most appropriate account to be debited for the following transactions.

Note that an account may be used more than once or not at all.

Paid for supplies bought on credit	Answer 1 Choose...Supplies on Hand   Accounts Payable   Cash At Bank   Equipment    Accounts Receivable   Inventory   Sales Revenue   Salaries Expense
Receipt of interest	Answer 2Choose...Supplies on Hand   Accounts Payable   Cash At Bank   Equipment   Accounts Receivable   Inventory   Sales Revenue   Salaries Expense
Purchase of equipment on credit	Answer 3   Choose...Supplies on Hand   Accounts Payable   Cash At Bank   Equipment   Accounts Receivable   Inventory Sales  Revenue     Salaries Expense
Services performed on account	Answer 4   Choose...Supplies on HandAccounts    PayableCash At BankEquipmentAccounts Receivab   leInventory   Sales Revenue   Salaries Expense
Receipt of cash on account	Answer 5 Choose...Supplies on Hand Accounts Payable Cash At Bank Equipment Accounts Receivable Inventory Sales Revenue Salaries Expense
Payment of Salaries	Answer 6 Choose...Supplies on Hand Accounts Payable Cash At BankE quipmentAccounts Receivable Inventory Sales Revenue Salaries Expense
Purchase of stock for cash	Answer 7 Choose...Supplies on Hand Accounts Payable Cash At Bank Equipment Accounts Receivable Inventory Sales Revenue Salaries Expense

Answer 1

Credit Sales for the year to 30 June 2018 = $95000

Explanation;

Credit Sales for the year to 30 June 2018 will be calculated as follow;

Accounts Receivable at 30 June 2018	$27000
Add: Receipts on account for the year to 30 June 2018	$98000
Less: Accounts Receivable at 1 July 2017	($30000)
Credit Sales for the year to 30 June 2018	$95000

Part – B;

	Transactions	Account to be debited
1	Paid for supplies bought on credit	Accounts Payable
2	Receipt of interest	Cash At Bank
3	Purchase of equipment on credit	Equipment
4	Services performed on account	Accounts Receivable
5	Receipt of cash on account	Cash At Bank
6	Payment of Salaries	Salaries Expense
7	Purchase of stock for cash	Inventory