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On April 30, Victor Services had an Accounts Receivable balance of $35,600. During the month of...

Question:

On April 30, Victor Services had an Accounts Receivable balance of $35,600. During the month of May, total credits to Accounts Receivable were $71,200 from customer payments. The May 31 Accounts Receivable balance was $29,000.

What was the amount of credit sales during May?

Credit Sales:

Accounts receivables are the balance that represents cash receivable from the customers against credit sales. This account needs to be adjusted for expected uncollectibles known as bad debts each year.

Answer and Explanation:


Computation of credit sales for the month of May:


Credit Sales = Ending balance in accounts receivables + customer payments received during the month - beginning balance in the account

= $29,000 + $71,200 - $35,600

= $64,600


Learn more about this topic:

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Accounts Receivable Journal Entries

from Financial Accounting: Homework Help Resource

Chapter 3 / Lesson 20
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