If Supreme Ltd has the following opening account balances for its debtors of: $6,000, $7,000, $4,000; and cash received from debtors during the period amounted to $5,000 and if no additional sales on account were made to the debtors during the period, then the closing balance of the control account for accounts receivable is:
A) $17,000.
B) $12,000.
C) $22,000.
D) $4,000.

Question

Quizplus · Accepted Answer

The opening account balance of the debtors' ledger, plus new charges during the period, minus cash collections from customers equals the closing balance of accounts receivable i.e.: (6,000 + 7,000 + 4,000) + 0 - 5,000 = 12,000.

If Supreme Ltd Has the Following Opening Account Balances for Its