On April 30, Victor Services had an Accounts Receivable balance of $19,100. During the month of May, total credits to Accounts Receivable were $53,200 from customer payments. The May 31 Accounts Receivable balance was $14,000. What was the amount of credit sales during May

Question

Business

Arabella Chung

7 March, 14:18

On April 30, Victor Services had an Accounts Receivable balance of $19,100. During the month of May, total credits to Accounts Receivable were $53,200 from customer payments. The May 31 Accounts Receivable balance was $14,000. What was the amount of credit sales during May

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Buckley · Answer 1

Credit Sales = $48100

Explanation:

The credit sales can be calculated by reversing the formula for Closing accounts receivables.

The formula for closing accounts recevables is,

Closing accounts receivables = Opening accounts receivables + Credit sales - collections from accounts receivables

To caculate Credit sales, the formula will be:

Credit sales = Closing accounts receivables + Collections from Accounts receivables - Opening accounts receivables

Credit sales = 14000 + 53200 - 19100 = $48100