Ebrahim has been trading for many years. At 31 May 2018, his trade receivables account had a balance of £48,221. During the financial year to 31 May 2019, Ebrahim made credit sales of £385,669. He received cash from his customers of £378,570. On 28 May 2019 a customer went into liquidation owing £4,410: the customer has insufficient assets with which to pay any of this debt. What is the debit figure that will appear in Ebrahim's trial balance for trade receivables at 31 May 2019?

Question

Quizplus · Accepted Answer

The debit figure for trade receivables at 31 May 2019 is calculated as follows: Starting balance + Credit sales - Cash received - Bad debts = £48,221 + £385,669 - £378,570 - £4,410 = £50,910.

Ebrahim Has Been Trading for Many Years