Question

During February, $98,970 was paid to creditors on account, and purchases on account were $126,680. Assuming that the February 28 balance of Accounts Payable was $42,560, determine the account balance on February 1. $fill in the blank 1 b. On October 1, the accounts receivable account balance was $49,900. During October, $434,100 was collected from customers on account. Assuming that the October 31 balance was $57,400, determine the fees billed to customers on account during October. $fill in the blank 2 c. On April 1, the cash account balance was $19,440. During April, cash receipts totaled $295,490 and the April 30 balance was $14,000. Determine the cash payments made during April. $fill in the blank 3

Answer 1

Let's solve these accounting questions step by step:

a. To determine the account balance on February 1, you can use the following formula:

Account Balance on February 1 = Account Balance on February 28 - Payments to Creditors + Purchases on Account

Account Balance on February 1 = $42,560 - $98,970 + $126,680

Account Balance on February 1 = $70,270

So, the account balance on February 1 was $70,270.

b. To find the fees billed to customers on account during October, you can use the following formula:

Fees Billed = Beginning Accounts Receivable + Collections - Ending Accounts Receivable

Fees Billed = $49,900 + $434,100 - $57,400

Fees Billed = $426,600

So, the fees billed to customers on account during October were $426,600.

c. To determine the cash payments made during April, you can use the following formula:

Cash Payments = Beginning Cash Balance + Cash Receipts - Ending Cash Balance

Cash Payments = $19,440 + $295,490 - $14,000

Cash Payments = $300,930

So, the cash payments made during April were $300,930.

Culled from AI