From the following information,prepare bills receivable account and to...
Preparation of Bills Receivable Account:
• Opening balance of bills receivable: $55,000
• Cash received (bill matured): $80,000
• Closing capital of bills receivable: $75,500
• Bills receivable endorsed to creditors: $60,000
Calculation:
• Total bills receivable at the beginning: $55,000
• Add: Cash received (bill matured): $80,000
• Less: Bills receivable endorsed to creditors: $60,000
• Closing balance of bills receivable: $75,500
Bills Receivable Account:
Opening balance: $55,000
Add: Cash received (bill matured): $80,000
Less: Bills receivable endorsed to creditors: $60,000
Closing balance: $75,500
Preparation of Total Debtors Account:
• Opening balance of debtors: $180,000
• Cash sales: $95,000
• Credit sales: $1,450,000
• Sales return: $78,000
• Cash received from debtors: $1,025,000
• Discount allowed: $55,000
• Bad debts: $10,000
Calculation:
• Total debtors at the beginning: $180,000
• Add: Cash sales: $95,000
• Add: Credit sales: $1,450,000
• Less: Sales return: $78,000
• Less: Cash received from debtors: $1,025,000
• Less: Discount allowed: $55,000
• Less: Bad debts: $10,000
• Closing balance of debtors: $557,000
Total Debtors Account:
Opening balance: $180,000
Add: Cash sales: $95,000
Add: Credit sales: $1,450,000
Less: Sales return: $78,000
Less: Cash received from debtors: $1,025,000
Less: Discount allowed: $55,000
Less: Bad debts: $10,000
Closing balance: $557,000