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The manager of needs to compute the following​ amounts:

a. Total cash paid during .
b. Cash collections from credit customers during . Analyze Accounts Receivable.
c. Cash paid on a note payable during . Analyze Notes Payable. ​Here's the additional data you need to analyze the​ accounts:


Account 30-Nov 31-Dec Additional information for the month of december
1. Cash $10,000 $5,000 Cash receipts, $96,000
2. Accounts Receivable 27,000 25,000 Sales on account, $47,000
3. Notes Payable 11,000 19,000 New borrowing, $28,000

Required:
Prepare a​ T-account to compute each​ amount, a through c.

User Laarni
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1 Answer

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Answer:

Computation of the following amounts:

a. Total cash paid during the month:

= $101,000

b. Cash collections from credit customers during the month:

= $49,000

c. Cash paid on a note payable during the month:

= $20,000

Step-by-step explanation:

A) Data and Calculations:

Account 30-Nov 31-Dec Additional during December

1. Cash $10,000 $5,000 Cash receipts, $96,000

2. Accounts Receivable 27,000 25,000 Sales on account, $47,000

3. Notes Payable 11,000 19,000 New borrowing, $28,000

B) T-accounts:

1. Cash Account

Description Debit Credit

Balance $10,000

Cash receipts 96,000

Cash payments 101,000

Balance $5,000

2. Accounts Receivable

Description Debit Credit

Balance 27,000

Sales on account 47,000

Cash receipts 49,000

Balance 25,000

3. Notes Payable

Description Debit Credit

Balance 11,000

New borrowing 28,000

Cash payment 20,000

Balance 19,000

User MikeDub
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