Use the information given below to answer the following questions:
Features Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2011, debtors owed $10 000, creditors were owed $7300, and the balance in allowance for doubtful debts was $250. Transactions for the year ended 30 June 2012 were as follows:
$$\begin{array} { l r }
\text { }&\$\
\text { Credit sales } & 120000 \
\text { Cash sales } & 300000 \
\text { Credit purchases } & 80000 \
\text { Cash purchases } & 200000 \
\text { Cash received from debtors } & 90000 \
\text { Cash paid to creditors } & 72000 \
\text { Discount received from creditors } & 1200 \
\text { Discount allowed to debtors } & 800 \
\text { Bad debts written off } & 150 \
\text { Increase in allowance for doubtful debts } & 300
\end{array}$$
-What was the balance of the debtors control account at 30 June 2012?
A) $39850
B) $39 200
C) $39 050
D) $40 000.

Question

Use the information given below to answer the following questions:
Features Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2011, debtors owed $10 000, creditors were owed $7300, and the balance in allowance for doubtful debts was $250. Transactions for the year ended 30 June 2012 were as follows:
$$\begin{array} { l r } 
\text { }&\$\
\text { Credit sales } & 120000 \
\text { Cash sales } & 300000 \
\text { Credit purchases } & 80000 \
\text { Cash purchases } & 200000 \
\text { Cash received from debtors } & 90000 \
\text { Cash paid to creditors } & 72000 \
\text { Discount received from creditors } & 1200 \
\text { Discount allowed to debtors } & 800 \
\text { Bad debts written off } & 150 \
\text { Increase in allowance for doubtful debts } & 300
\end{array}$$
-What was the balance of the debtors control account at 30 June 2012?
A) $39850
B) $39 200
C) $39 050
D) $40 000.

Quizplus · Accepted Answer

Debtors control account balance at 1 July 2011 = $10 000
Credit sales = $120 000
Cash sales = $300 000
Cash received from debtors = $90 000
Discount allowed to debtors = $800
Bad debts written off = $150

Total Debtors = $10 000 + $120 000 + $300 000 - $90 000 - $800 - $150 = $329 050

Increase in allowance for doubtful debts = $300
Balance in allowance for doubtful debts at 30 June 2012 = $250
New balance in allowance for doubtful debts = $550

Total Debtors after adjustment = $329 050 - $550 = $328 500

Therefore, the balance of the debtors control account at 30 June 2012 was $39 050 (Debtors control account balance at 30 June 2012 = $39 050 + $550 (allowance for doubtful debts) = $39 600)

Use the Information Given Below to Answer the Following Questions