31.The following data pertains to the customers' accounts of ABC Corp at June 30, 20X1: Accounts receivable, June 1, P80,000 Accounts receivable, June 30, P97,000 Cash collections during the month (net of 2% cash discount), P107,800 Sales returns , P10,000 Customer's account written off, P17,000 How much is the credit sales for the month? 134,800 137,000 154,000 151,800
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Accounts receivable, June 30, P97,000
Cash collections during the month (net of 2% cash discount), P107,800
Sales returns , P10,000
Customer's account written off, P17,000
How much is the credit sales for the month?
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