Financial Accounting Tutorials: Cash Transactions and Statements

ACCT3007 Corporate Accounting Systems Autumn Semester Week 2 Tutorial Question Question 1 You have extracted the following information from the accounts of A Ltd for the year ending 30 June 2023: Sales for the year$895 000 Doubtful debts expense for the year$5 500 Opening balance of accounts receivable$95 000 Closing balance of accounts receivable$103 000 Opening balance of the allowance for doubtful debts$7 500 Closing balance of the allowance for doubtful debts$4 500 Calculate cash receipts from customers for the year ending 30 June 2023. Complete the following t-accounts for Accounts Receivable and Allowance for Doubtful Debts. Accounts receivableAllowance for Doubtful Debts Cash receipts from customers: $878,500 Question 2 You have extracted the following information from the accounts of B Ltd for the year ending 30 June 2023: Cost of sales for the year$305 500 Opening balance of accounts payable$92 000 Closing balance of accounts payable$81 000 Opening balance of inventory$83 000 Closing balance of inventory$99 500 Assuming B Ltd's accounts payable only includes balances owing for purchase of inventory, calculate cash payments to suppliers for the year ending 30 June 2023. Complete the following t-accounts for Accounts Payable and Inventory.