Paper 3 · June 2017 · Partnership Accounts
A trader's trade receivables were $17 000 at the start of the year and $21 000 at the end. During the year $214 000 was received from trade receivables, bad debts of $2 300 were written off, discounts of $1 700 were allowed and customers returned goods worth $3 800. Calculate the sales invoiced to credit customers for the year.
Model answer
225800
Also accepted: 225 800, $225 800
Explanation
Build the trade receivables control account: credit sales = $214 000 received + $2 300 bad debts + $1 700 discount allowed + $3 800 returns inwards + $21 000 closing balance - $17 000 opening balance = $225 800.
Derived from ZIMSEC Accounting 9197/3 Paper 3 (Case Study), June 2017, Q1