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  3. question 3 (7 marks) you are provided with the fol

Question 3 (7 marks) You are provided with the following information: Sales for the year...

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Accounting

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Question 3 (7 marks) You are provided with the following information: Sales for the year S400 000 Discounts provided during the year to customers for early payment $10 000 Doubtful debts expense for the year SS 000 Opening balance of accounts receivable $90 000 Closing balance of accounts receivable $80 000 Opening balance of the provision for doubtful debts $9 000 Closing balance of the provision for doubtful debts 58 000 Cost of goods sold for the year S60 000 Purchases for the year (on credit terms) $80 000 Discounts received for early payment to suppliers S2 000 Stock write-offs owing to water damage caused by melting ice in the $5000 Antarctic Opening balance of trade creditors S40 000 Closing balance of trade creditors $35 000 Opening balance of inventory S10 000 Closing balance of inventory $25 000 Required: (a) Calculate the cash receipts from customers during the year. (3.5 marks) (b) Calculate the cash payments to suppliers during the year. (3.5 marks) ANSWER (a): ANSWER (b)

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