We read your photo as:

A business had opening debtors of 6,000, closing debtors of 4,500, cash received from debtors of 18,000, and bad debts written off of 500, What was the total credit sales?

Accounting

ScanSolve AI Answer

Answer

D

Step-by-step solution

4 steps

To find the total credit sales, we can use the Debtors Control Account formula.

  1. Identify the known values.

    • Opening Debtors: \6,000$
    • Closing Debtors: \4,500$
    • Cash received from Debtors: \18,000$
    • Bad Debts Written Off: \500$
    • Total Credit Sales: Let this be XX
  2. Set up the Debtors Control Account equation.

    The basic formula for a Debtors Control Account is:

    Opening Debtors+Credit Sales=Cash Received+Bad Debts Written Off+Closing Debtors\text{Opening Debtors} + \text{Credit Sales} = \text{Cash Received} + \text{Bad Debts Written Off} + \text{Closing Debtors}
  3. Substitute the known values into the equation.

    $6,000+X=$18,000+$500+$4,500\$6,000 + X = \$18,000 + \$500 + \$4,500

  4. Solve for X (Total Credit Sales).

    First, sum the right side of the equation: $6,000+X=$23,000\$6,000 + X = \$23,000 Now, subtract the opening debtors from both sides: X=$23,000−$6,000X = \$23,000 - \$6,000 X=$17,000X = \$17,000

    The total credit sales are $17,000.

    Comparing this to the options:
    A. 16,000B.16,000 B. 20,000 C. 19,000D.19,000 D. 17,000

    The correct option is D.

    The final answer is \boxed{\text{D. \17,000}}$.

Was this helpful?

Try one yourself

A new problem that tests the same skill.

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question
Handwritten step-by-step solution preview

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp