Question

If a company makes three entries into the cash receipts journal for cash received from customers paying on account of $500, $750, and $1,000 during the month, and during the same month has to refund $50 due to a customer overpaying, what is the balance of the cash receipts journal at the end of the month?

Answer 1

For the answer to the question above,
just add $500 + $700+ $1000

And the answer would be $2,250.00
If there's a refund. The answer would be the same. That wouldn't affect the cash receipts journal. That would go to the Accounts Payable and you could deduct it in the next month.

Answer 2

To solve add: $500 + $750 + $1000 = $2,250 There is a $50 refund that happened the same month because the customer over payed. If there is a refund, it comes off of the next months Accounts Payable instead of the current months cash journal. Due to them refunding, it will be deducted off of the sales in the following month so the company will be negative until they make their first sale over $50.