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 $9,000 at the beginning of the month and $10,200 at the end of the month. During the month, purchases on account amounted to $18,300. Calculate the payments to suppliers during the month.

Accounts Payable Beginning balance 9,000 Payments to suppliers 17,100 Purchases on account 18,300 Ending balance 10 20 b. Accounts Receivable had a balance of $10,700 at the beginning of the month and $9,900 at the end of the month. Cash collected from customers totaled $38,000 during the month. Calculate credit sales during the month, assuming that all sales were made on account. Accounts Receivable Beginning balance Credit sales Ending balance 10,700 37,200 Collections from customers 38,000 9,900

Answer 1

a) T Account

Account payable
Payment to suppliers (9000+18300-10200)	17100	Beginning balance	9000
		Purchase	18300
		Ending balance	10200

b) T Account

Account Receivable
Beginning balance	10700
Credit sales	37200	Cash collection	38000
Ending balance	9900