Answer to Question #276266 in Accounting for Nelly

Question

As at 1.6.2012 a customer owed R18,400 for goods sold ten days earlier. Sales made on 7th June was invoiced at R60,000 (excl of VAT), with an offer of 5% cash discount if paid for within a week. R22,325 was received on 11th June. The amount receivable from the customer would be:

R59,050

R49,075

R57,875

R65,075

Answer 1

Amount receivable;

=money owed at the beginning +invoice-cash paid

=R18,400+(R60,000+R9,975)-R22,325

=R59,050