Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 27

Transaction analysis using T-accounts
a. Accounts Payable had a balance of $9,000 at the beginning of the month and $10,200 at the end of the month. During the month, purchases on account amounted to $18,300. Calculate the payments to suppliers during the month.
b. Accounts Receivable had a balance of $10,700 at the beginning of the month and $9,900 at the end of the month. Cash collected from customers totaled $38,000 during the month. Calculate credit sales during the month, assuming that all sales were made on account.
Required:
Solve for the missing amounts using a T-account for the balance sheet accounts in each situation. Assume that there is only one debit entry and one credit entry in the account during the month.