Question

Account Balances b. During February, $84,080 was paid to creditors on account, and purchases on account were $107,620. Assuming the February 28 balance of Accounts Payable was $36,150, determine the account balance on February 1. b. On October 1, the accounts receivable account balance was $28,200. During October, $245,300 was collected from customers on account. Assuming the October 31 balance was $32,400, determine the fees billed to customers on account during October On April 1, the cash account balance was $17,700. During April, cash receipts totaled $269,040 and the April 30 balance was $12,740. Determine the cash payments made during April

Answer 1

(a)

Beginning Balance in Creditors = Closing Balance in Creditors+ Paid to Creditors on account - Purchases Made on account

Beginning Balance in Creditors = $ 36,150 + $ 84,080 - $ 107,620

Beginning Balance in Creditors = $ 12,610

(b)

Fees Billed to customers on account = Closing Balance in Accounts Receviable+ Collected from Customers - Beginning Balance in Accounts Receviable

Fees Billed to customers on account = $ 32,400 +$ 245,300 - $ 28,200

Fees Billed to customers on account = $ 249,500

(c)

Cash Payments = Closing Balance in Cash Account - Cash Receipts - Beginning Balance in Cash Account

Cash Payments = $ 32,800 - $ 269,040 -$ 28,200

Cash Payments = $264,840