During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming that the February 28 balance

a. During February, $186,500 was paid to creditors on account, and purchases on account were $201,400. Assuming that the February 28 balance of Accounts Payable was $59,900, determine the account balance on February 1.

b. On October 1, the accounts receivable account balance was $115,800. During October, $449,600 was collected from customers on account. Assuming that the October 31 balance was $130,770, determine the fees billed to customers on account during October.

c. On April 1, the cash account balance was $46,220. During April, cash receipts totaled $248,600 and the April 30 balance was $56,770. Determine the cash payments made during April.


Answer:

a.
X + $201,400 – $186,500 = $59,900
X = $59,900 + $186,500 – $201,400
X = $45,000
b.
Oct. 1 115,800 449,600
Oct. 31 130,770
$115,800 + X – $449,600 = $130,770
X = $130,770 + $449,600 – $115,800
X = $464,570
c.
Apr. 1 46,220X 
Apr. 30 56,770
$46,220 + $248,600 – X = $56,770
X = $46,220 + $248,600 – $56,770
X = $238,050