Answer:
Credit sales= $69,000
Explanation:
Accounts receivable is a transit account that is used to show revenue that is owed to the business by other parties such as vendors.
The portion of accounts receivable that is collected contributes to profits, while the portion that is not collectible results in loss to the business.
When customers pay the balance in the account reduces, while when credit sales are made the balance increases.
Final balance of account receivable= Opening balance+ credit sales- customer payments
33,000= 40,000+ credit sales- 76,000
Credit sales= 33,000+ 76,000- 40,000
Credit sales= $69,000
Answer:
Credit sales is $69,000
Explanation:
Account receivables can be defined as the amount of money owed by customers to a company because it is convertible to cash in the future. The company is entitled to receive the money because it has provided a product or service.
The amount of credit sales can be calculated as:
Final balance of account receivable= Opening balance+ credit sales- customer payments
Final balance= 33,000
Opening balance= 40,000
Customer payment= 76,000
Credit sales is unknown
33,000= 40,000+ credit sales- 76,000
Make credit sales the subject of the formular
Credit sales= 33,000+ 76,000- 40,000
Credit sales= $69,000
Therefore the credit sales is $69,000.
