Question

On july 1, the cash account balance was $37,450. during july, cash payments totaled $115,860 and the july 31 balance was $29,600. determine the cash receipts during july.

Answer 1

If we want to know the total deposits which is made then:

We begin with Initial balance on July 1: $37,450

Then subtract the cash payments of $115,860

So subtotal = ($78,410)

To arrive at the final balance of : $29,600 there had to be deposits of 78,410 to offset the subtotal + another $29,600, so

total deposits = 78,410 + 29,600 = $108,010

Answer 2

108,010

Starting balance 37,450 Minus payments of 115,860 Leaves balance = $-78,410 (37,450-115860= -78,410) Therefore in order for the balance to go up to 29,600 the receipts must have been 108,010 because 29,600 --78410 = 108,010