ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Accounting => Topic started by: Seamus Wong on October 30, 2019, 05:42:43 pm

Title: Budgeting
Post by: Seamus Wong on October 30, 2019, 05:42:43 pm

If a question says that "10% of accounts receivable pay in the month following the sale", does that mean that if a business made $10,000 in credit sales in one month - e.g. March -, they would receive the $1,000 (10%) in March? Or would they receive the $1,000 in April?

Title: Re: Budgeting
Post by: NomotivationF on October 30, 2019, 05:46:34 pm

Quote from: Seamus Wong on October 30, 2019, 05:42:43 pm

If a question says that "10% of accounts receivable pay in the month following the sale", does that mean that if a business made $10,000 in credit sales in one month - e.g. March -, they would receive the $1,000 (10%) in March? Or would they receive the $1,000 in April?

If they earn 10k in march they'd receive 1k in april

Title: Re: Budgeting
Post by: Seamus Wong on October 30, 2019, 05:50:35 pm

Quote from: NomotivationF on October 30, 2019, 05:46:34 pm

If they earn 10k in march they'd receive 1k in april

thanks man

Title: Re: Budgeting
Post by: accountboi on November 01, 2019, 05:09:03 pm

Hey,

You should include GST for the receipt from accounts receivable. So it would be $1,100 for April because the accounts receivable balance is $11,000 (credit sale + GST).