a. During February, $88,030 was paid to creditors on account, and purchases on a

Question

a. During February, $88,030 was paid to creditors on account, and purchases on account were $112,680. Assuming the February 28 balance of Accounts Payable was $37,850, determine the account balance on February 1. $

b. On October 1, the accounts receivable account balance was $44,400. During October, $386,300 was collected from customers on account. Assuming the October 31 balance was $51,100, determine the fees billed to customers on account during October. $

c. On April 1, the cash account balance was $23,490. During April, cash receipts totaled $357,050 and the April 30 balance was $16,910. Determine the cash payments made during April.

Explanation / Answer

a.Ending AP=Beginning AP+Credit purchases-Payment to creditors

37850=Beginning AP+112680-88030

Beginning AP=37850-112680+88030

=$13200

b.

Ending AR=Beginning AR+Fees billed to customers-Cash collected from customers

51100=44400+Fees billed to customers-386300

Fees billed to customers=51100-44400+386300

=$393000.

c.

Ending cash balance=Beginning cash balance+Cash receipts-Cash payments

16910=23490+357050-Cash payments

Cash payments=23490+357050-16910

=$363630.

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