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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 stepsTo find the total credit sales, we can use the Debtors Control Account formula.
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
- Opening Debtors:
Set up the Debtors Control Account equation.
The basic formula for a Debtors Control Account is:
Substitute the known values into the equation.
Solve for X (Total Credit Sales).
First, sum the right side of the equation: Now, subtract the opening debtors from both sides:
The total credit sales are $17,000.
Comparing this to the options:
A. 20,000 C. 17,000The correct option is D.
The final answer is
\boxed{\text{D. \17,000}}$.
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