Accounts payable, 31 December 2016 $50 000 Accounts payable, 31 December 2017 $80 000 Inventory, 31 December 2016 $60 000 Inventory, 31 December 2017 $150 000 Cost of goods sold, 2017 $850 000 Assume that all merchandise purchases are on account. How much cash suppliers for inventory purchases during 2017?

Accounts payable, 31 December 2016 $50 000 Accounts payable, 31 December 2017 $80 000 Inventory, 31 December 2016 $60 000 Inventory, 31 December 2017 $150 000 Cost of goods sold, 2017 $850 000 Assume that all merchandise purchases are on account. How much cash suppliers for inventory purchases during 2017?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 18EA: Use the following excerpts from Huckleberry Companys financial statements to determine cash paid to...

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At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet. Accounts receivable $647,000 Less: Allowance for doubtful accounts 41,000 During 2018, the company had the following summary transactions related to receivables and sales. Laramie uses the perpetual inventory system. 1. Sales on account amounted to $2,369,000. The cost of the inventory sold was $2,155,790. 2. Sales returns and allowances with a total sales price of $38,000 and a cost of $34,580 were restored to inventory. 3. Collections of accounts receivable were $2,079,000. 4. Write-offs of accounts receivable deemed uncollectible, $46,200. 5. Recovery of bad debts previously written off as uncollectible, $13,600. Enter the January 1, 2018, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances before any year-end adjustments. (Post entries in the order of…