During february 98100 was paid to creditors on account and...

During February, $98,100 was paid to creditors on account, and purchases on account were $125,570. Assuming that the February 28 balance of Accounts Payable was $42,180, determine the account balance on February 1. b. On October 1, the accounts receivable account balance was $44,700. During October, $388,900 was collected from customers on account. Assuming that the October 31 balance was $51,400, determine the fees billed to customers on account during October.$ c. On April 1, the cash account balance was $23,340. During April, cash receipts totaled $354,770 and the April 30 balance was $16,800. Determine the cash payments made during April.$

Transcript

00:01 In this scenario, you're talking about adjusting accounts, and you've asked for three different examples.

00:08 The first example is that you've noted during february, we paid $98 ,100 to creditors, and we purchased $125 ,570 on account.

00:31 At the end of the month, the ending balance in accounts payable was $42 ,000.

00:35 180.

00:37 What you've asked for is what the beginning amount is.

00:43 Purchases would increase my accounts payable because i owe more.

00:47 Paying it off would decrease it.

00:49 So let's make this value that we're missing x.

00:52 My beginning plus my purchases, which would increase my accounts payable, minus the payments of my bill equals my ending amount.

01:01 First, combine your like terms.

01:04 I get x plus 27 ,000 470 equals 42 ,180.

01:11 Subtract over this amount to find that your beginning balance in accounts payable must be $14 ,710.

01:21 Let's look at your next question.

01:25 This says on october 1, accounts receivable balance amounted to $44 ,700.

01:33 During october, they collected $38 ,000.

01:41 At the end of the month, the balance in accounts receivable was 51 ,400.

01:49 What you've asked is the amount of fees build to customers.

01:55 Fees build would increase my accounts receivable because it shows customers owe me more, not less.

02:01 And collections would decrease accounts receivable because we're no longer waiting on that money.

02:06 So you have a simple math equation here...

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