During March, $276,500 was paid to creditors on account, and purchases on account were $261,000

a. During March, $276,500 was paid to creditors on account, and purchases on account were $261,000. Assuming the March 31 balance of Accounts Payable was $76,000, determine the account balance on March 1.

b. On July 1, the accounts receivable account balance was $49,000. During July, $525,000 was collected from customers on account. Assuming the July 31 balance was $61,500, determine the fees billed to customers on account during July.

c. On September 1, the cash account balance was $28,440. During September, cash receipts totaled $112,100 and the September 30 balance was $33,200. Determine the cash payments made during September.

Answer:

a.   Accounts Payable   Mar. 1 X  276,500    261,000    Mar. 31 76,000  X + $261,000 – $276,500 = $76,000 X = $76,000 + $276,500 – $261,000 X = $91,500   
b.  Accounts Receivable July  1  49,000  525,000 X July  31  61,500  $49,000 + X – $525,000 = $61,500 X = $61,500 + $525,000 – $49,000 X = $537,500   
c.  Cash  Sept.  1 28,440  X  112,100   Sept.  30 33,200    $28,440 + $112,100 – X = $33,200 X = $28,440 + $112,100 – $33,200 X = $107,340