Closing balance of receivable after adjusting errors (video below)
The following receivables ledger control account has been prepared by a trainee accountant:
| 20X5 | $ | 20X5 | $ |
| 01-Jan Balance | 71,170 | 31-Dec Cash received from credit customers | 44,948 |
| 31-Dec Credit sales | 47,280 | Contras against amounts owing by company in payables ledger | 200 |
| Discounts allowed | 915 | Balance | 75,897 |
| Irrecoverable debts written off | 450 | ||
| Sales returns | 1,230 | – | |
| 121,045 | 121,045 |
What should the closing balance on the account be when the errors in it are corrected?
Answer
| RECEIVABLES LEDGER CONTROL ACCOUNT | |||
| $ | $ | ||
| Opening balance | 71,170 | Cash received | 44,948 |
| Credit sales | 47,280 | Discounts allowed | 915 |
| Irrecoverable debts written off | 450 | ||
| Sales returns | 1,230 | ||
| Contras | 200 | ||
| – | Closing balance | 70,707 | |
| 118,450 | 118,450 | ||