contestada

The beginning-of-the-period cash balance for the Travis Company was a $24,000 debit. Cash sales for the month were $12,000 and sales on account were $16,000. The company paid $5,000 cash for current-period purchases and also paid $6,000 cash for amounts due from last month. What is the ending debit or credit balance in the Cash account?

Respuesta :

Answer:

The ending debit balance in the Cash account is $25,000

Explanation:

The amount of cash Travis received in the month=Cash sales for the month=$12,000

The amount of cash Travis paid in the month = Cash paid for current-period  purchases + Cash paid for amounts due from last month = $5,000 + $6,000 = $11,000

The ending Cash account balance = The beginning cash balance + Cash received in the month - Cash paid in the month = $24,000 + $12,000 - $11,000 = $25,000

The ending debit balance in the Cash account is $25,000