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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