On July 1, the cash account balance was $37,450. During July, cash payments totaled $115,860 and the July 31 balance was $29,600

On July 1, the cash account balance was $37,450. During July, cash payments totaled $115,860 and the July 31 balance was $29,600. Determine the cash receipts during July.

Answer:

Using the following T account, solve for the amount of cash receipts (indicated by ? below).

July 1 Bal. 37,450 115,860 Cash payments Cash receipts ? July 31 Bal. 

29,600 $29,600 = $37,450 + Cash receipts – $115,860 

Cash receipts = $29,600 + $115,860 – $37,450 = $108,010