Question

Solve for the missing amounts in the T-account given below. Assume that there is only one debit entry and one credit entry in the account during the month. Required: a. Accounts Payable had a balance of $3,700 at the beginning of the month and $4,800 at the end of the month. During the month, purchases on account amounted to $8,200. Calculate the payments to suppliers during the month

. b. Accounts Receivable had a balance of $22,800 at the beginning of the month and $20,500 at the end of the month. Cash collected from customers totaled $79,500 during the month. Calculate credit sales during the month, assuming that all sales were made on account.

Answer 1

Payment to suppliers Accounts Payable Beginning balance $7,100 Purchases on account Ending balance $3,700 $8,200 $4,800 Payment to suppliers = $8.200 + $3,700 - $4,800 Beginning balance Credit Sales Ending balance Accounts Receivable $22,800 $77,200 Collections from customers $20,500 $79,500 Credit Sales = $ 79,500 + $20,500 - $22,800 = $77,200