Reference no: EM132984723

Question - You are provided with the following information:

Sales for the year $400 000

Discounts provided during the year to customers for early payment $10 000

Doubtful debts expense for the year $5 000

Opening balance of accounts receivable $90 000

Closing balance of accounts receivable $80 000

Opening balance of the provision for doubtful debts $9 000

Closing balance of the provision for doubtful debts $8 000

Cost of goods sold for the year $60 000

Purchases for the year (on credit terms) $80 000

Discounts received for early payment to suppliers $2 000

Stock write-offs owing to water damage caused by melting ice in the Antarctic $5 000

Opening balance of trade creditors $40 000

Closing balance of trade creditors $35 000

Opening balance of inventory $10 000

Closing balance of inventory $25 000

Required -

(a) Calculate the cash receipts from customers during the year.

(b) Calculate the cash payments to suppliers during the year.