ACCA Applied Knowledge · Financial Accounting · Receivables and payables
Marlow Co's sales ledger control account has an opening balance of $48,000 debit. During the month credit sales were $126,000, cash received from customers was $119,000, sales returns were $4,000 and irrecoverable debts written off were $2,500. What is the closing balance on the control account?
The closing balance is $48,500 debit. Start with opening receivables of $48,000, add credit sales of $126,000, then deduct cash received of $119,000, sales returns of $4,000 and irrecoverable debts written off of $2,500.
- A$48,500
- B$50,500Correct
- C$53,500
- D$43,500
Explanation
Closing = 48,000 + 126,000 - 119,000 - 4,000 - 2,500 = 48,500. Check: 174,000 - 125,500 = 48,500. So the correct figure is $48,500 and not $50,500.
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