Ask Question
23 February, 14:40

For the month of May 2020, Ceres Corporation, which uses the direct write-off method in accounting for uncollectible accounts receivable, has the following information: Cash sales $40,000 Cash received on accounts receivable $32,000 Accounts receivable, May 1, 2020 $105,000 Accounts receivable, May 31, 2020 $92,000 Accounts receivable written off as uncollectible $2,000 What are the gross sales for May 2020

+4
Answers (1)
  1. 23 February, 14:41
    0
    Answer and Explanation:

    $61,000 = 40000+32000-13000+2000

    Find the difference between the beginning and ending accounts receivable.

    $105,000 - $92,000 = $13,000

    Subtract this from the cash received on accounts receivable to find the amount of credit sales.

    $32,000 - $13,000 = $19,000

    Add this to the cash sales.

    $19,000 + $40,000 = $59,000

    Adjust for the direct write offs.

    $59,000 + $2,000 = $61,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “For the month of May 2020, Ceres Corporation, which uses the direct write-off method in accounting for uncollectible accounts receivable, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers