EX 2-11 Account balances

a. During October, $90,000 was paid to creditors on account, and purchases on account
were $125,000. Assuming the October 31 balance of Accounts Payable was $40,000,
determine the account balance on October 1.
b. On May 1, the accounts receivable account balance was $25,000. During May, $240,000
was collected from customers on account. Assuming the May 31 balance was $36,000,
determine the fees billed to customers on account during May.

c. On November 1, the cash account balance was $18,275. During November, cash
receipts totaled $279,100 and the November 30 balance was $13,200. Determine the
cash payments made during November.

a.
                                  Accounts Payable
                                                 Oct. 1                 X
                               90,000                        125,000
                                                 Oct. 31       40,000

 X + $125,000 – $90,000 = $40,000
 X = $40,000 + $90,000 – $125,000
 X = $5,000

b.
                                   Accounts Receivable
           May 1              25,000                       240,000
                                           X
           May 31            36,000

 $25,000 + X – $240,000 = $36,000
 X = $36,000 + $240,000 – $25,000
 X = $251,000

c.
                                            Cash
          Nov. 1               18,275                          X
                                  279,100
          Nov. 30             13,200

 $18,275 + $279,100 – X = $13,200
 X = $18,275 + $279,100 – $13,200
 X = $284,175