Calculate the cash payments to suppliers during the year

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Reference no: EM133000747

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.

Reference no: EM133000747

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