Northstar Enterprises had the following balances as of December 31,2011:
$\begin{array}{ll}
\text { Accounts Receivable } & \$ 21,600 \
\text { Accounts Payable } & \$ 14,300 \
\text { Unearned Revenue } & \$ 6,100
\end{array}$
During 2012,the following activity occurred:
1.$73,100 was paid by customers in advance for work to be performed by the company.The balance in the unearned revenue account as of December 31,2012,was $7,700.
2.Credit sales were $497,100.As of December 31,2012,the accounts receivable balance was $32,900.
3.Accounts payable is solely attributable to the acquisition of merchandise inventory on account.Credit purchases of merchandise inventory during 2012 were $291,000.The balance in accounts payable as of December 31,2012,was $13,100.
Required:
a.What was the amount of cash received from credit customers in 2012?
b.How much cash was paid by the company for the credit purchase of merchandise inventory related to its accounts payable in 2012?
c.How much sales revenue was recognized by the company in 2012,related to the work performed for customers who paid in advance?

Question

Northstar Enterprises had the following balances as of December 31,2011:
 $\begin{array}{ll}
\text { Accounts Receivable } & \$ 21,600 \
\text { Accounts Payable } & \$ 14,300 \
\text { Unearned Revenue } & \$ 6,100
\end{array}$ 
During 2012,the following activity occurred:
1.$73,100 was paid by customers in advance for work to be performed by the company.The balance in the unearned revenue account as of December 31,2012,was $7,700.
2.Credit sales were $497,100.As of December 31,2012,the accounts receivable balance was $32,900.
3.Accounts payable is solely attributable to the acquisition of merchandise inventory on account.Credit purchases of merchandise inventory during 2012 were $291,000.The balance in accounts payable as of December 31,2012,was $13,100.
Required:
a.What was the amount of cash received from credit customers in 2012?
b.How much cash was paid by the company for the credit purchase of merchandise inventory related to its accounts payable in 2012?
c.How much sales revenue was recognized by the company in 2012,related to the work performed for customers who paid in advance?

Quizplus · Accepted Answer

The Answer of Northstar Enterprises had the following balances as of December 31,2011:
 $\begin{array}{ll}
\text { Accounts Receivable } & \$ 21,600 \
\text { Accounts Payable } & \$ 14,300 \
\text { Unearned Revenue } & \$ 6,100
\end{array}$ 
During 2012,the following activity occurred:
1.$73,100 was paid by customers in advance for work to be performed by the company.The balance in the unearned revenue account as of December 31,2012,was $7,700.
2.Credit sales were $497,100.As of December 31,2012,the accounts receivable balance was $32,900.
3.Accounts payable is solely attributable to the acquisition of merchandise inventory on account.Credit purchases of merchandise inventory during 2012 were $291,000.The balance in accounts payable as of December 31,2012,was $13,100.
Required:
a.What was the amount of cash received from credit customers in 2012?
b.How much cash was paid by the company for the credit purchase of merchandise inventory related to its accounts payable in 2012?
c.How much sales revenue was recognized by the company in 2012,related to the work performed for customers who paid in advance?

Northstar Enterprises Had the Following Balances as of December 31,2011