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XYZ Ltd's Financial Information Includes the Following

Question 60

Multiple Choice

XYZ Ltd's financial information includes the following.
Sales $100 000
Accounts receivable balance 1 July 15 30 000
Accounts receivable balance 30 June 16 35 000
Bad debts written off [*] 1 000
Discount allowed 5 000
[*] The journal entry for bad debts written off debited bad debts expense $1000 and credited accounts receivable $1000 (direct write-off method) .
The cash received from customers for the year ended 30 June 16 was:


A) $89 000.
B) $91 000.
C) $94 000.
D) $101 000.

Correct Answer:

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