A Accounting

Closing​ Account Receivable after correcting the errors ( video below)

An inexperienced bookkeeper has drawn up the following receivables ledger control account:

RECEIVABLES LEDGER CONTROL ACCOUNT 
$ $
Opening balance 45,000 Credit sales 47500
Cash from credit customers 57,000 Irrecoverable debts written off 375
Sales returns 2,000 Contras against payables 600
Cash refunds to credit customers 825 Closing balance (balancing figure) 57,400
Discount allowed 1,050             –
105,875 105,875

What should the closing balance be after correcting the errors made in preparing the account?

Answer

RECEIVABLES LEDGER CONTROL ACCOUNT 
$ $
Opening balance 45,000 Cash from credit customers 57,000
Credit sales 47,500 Irrecoverable debts written off 375
Cash refunds 825 Sales returns 2,000
Discount allowed 1,050
Contras 600
          – Closing balance 32,300
93,325 93,325


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