Cash sales 50000 cash collected from debtors 130000 bad debts during y...
Total Sales Calculation:
To calculate the total sales, we need to consider the cash sales, cash collected from debtors, and the bad debts during the year. Let's break down the calculation step by step:
1. Cash Sales:
Cash sales refer to the total amount of sales made in exchange for cash. In this scenario, the cash sales amount is given as $50,000.
2. Cash Collected from Debtors:
Cash collected from debtors refers to the amount of money received from customers who made purchases on credit. In this case, the cash collected from debtors is given as $130,000.
3. Bad Debts:
Bad debts are the amounts that are unlikely to be collected from debtors due to various reasons such as bankruptcy or default. In this case, the bad debts amount is given as $5,000.
4. Debtors at Beginning:
Debtors at the beginning refer to the outstanding amount owed by customers from the previous year. In this case, the debtors at the beginning are given as $10,000.
Now, let's calculate the total sales using the given information:
Step 1: Calculate the debtors at the end of the year.
Debtors at the end = Debtors at the beginning + Total credit sales - Cash collected from debtors - Bad debts
Debtors at the end = $10,000 + Total credit sales - $130,000 - $5,000
Step 2: Rearrange the equation and calculate the total credit sales.
Total credit sales = Debtors at the end + $130,000 + $5,000 - $10,000
Step 3: Substitute the values and calculate.
Total credit sales = Debtors at the end + $130,000 + $5,000 - $10,000
Total credit sales = Debtors at the end + $125,000
Step 4: Substitute the value of debtors at the end.
Total credit sales = $125,000 + $125,000 - $10,000
Total credit sales = $250,000 - $10,000
Total credit sales = $240,000
Finally, to calculate the total sales, we add the cash sales to the total credit sales:
Total sales = Cash sales + Total credit sales
Total sales = $50,000 + $240,000
Total sales = $290,000
Therefore, the total sales will be $290,000.
Cash sales 50000 cash collected from debtors 130000 bad debts during y...
175000
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