Question

a. Corentine Co. had $171,000 of accounts payable on September 30 and $142,000 on October 31. Total purchases on account during October were $300,000. Determine how much cash was paid on accounts payable during October. b. On September 30, Valerian Co. had a $112,000 balance in Accounts Receivable. During October, the company collected $112,390 from its credit customers. The October 31 balance in Accounts Receivable was $108,000. Determine the amount of sales on account that occurred in October. c. During October, Alameda Company had $121,500 of cash receipts and $122,150 of cash disbursements. The October 31 Cash balance was $28,100. Determine how much cash the company had at the close of business on September 30.

Answer 1

Answer
a)
Accounts Payable
Payments on Account	$          329,000	Beginning Balance	$      171,000
Ending Balance	$          142,000	Purchase on Account	$      300,000
Total	$          471,000	Total	$      471,000
b)
Accounts Receivable
Beginning Balance	$          112,000	Cash Receipts	$      112,390
Sales on Account	$          108,390	Ending Balance	$      108,000
Total	$          220,390	Total	$      220,390
c)
Accounts Receivable
Beginning Balance	$            28,750	Cash Disbursements	$      122,150
Cash Receipts	$          121,500	Ending Balance	$        28,100
Total	$          150,250	Total	$      150,250

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