ACCA Applied Knowledge · Financial Accounting · General ledger accounts and journal entries
A sales ledger account for customer Brandt shows: opening balance $5,200 debit; credit sales $9,800; cash received $8,000; sales returns $1,100; and a debt of $700 written off as irrecoverable. What is the closing balance on Brandt's account?
The closing balance is $5,200 debit. Opening balance and credit sales total $15,000 on the debit side. Cash received, returns and the irrecoverable debt write-off total $9,800 on the credit side, leaving $5,200.
- A$5,200 debitCorrect
- B$6,600 debit
- C$5,900 debit
- D$4,500 debit
Explanation
Debits: 5,200 + 9,800 = 15,000. Credits: 8,000 + 1,100 + 700 = 9,800. Balance = 15,000 - 9,800 = 5,200 debit. Option 2 ignores the write-off and returns incorrectly.
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