Question

During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming the February 28 balance of Accounts Payable was $59,900, determine the account balance on February 1. $fill in the blank 1 b. On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming the October 31 balance was $130,770, determine the fees billed to customers on account during October. $fill in the blank 2 c. On April 1, the cash account balance was $46,220. During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April. $fill in the blank 3

Answer 1

Answer:

1. Account balance on February 1:

= Payments made + Closing balance - Purchases

= 186,500 + 59,900 - 201,400

= $45,000

2. Fees billed to customers on account in October:

= Amount collected from customers + Closing balance - Opening balance

= 449,600 + 130,770 - 115,800

= $464,570

3. Cash payments in April:

= Opening balance + Cash receipts - Closing balance

= 46,220 + 248,600 - 56,770

= $238,050