Day: February 25, 2023

The following information relates to Alex plc’s business:

• opening accounts receivable – £280k
• cash received during the year – £520k
• discounts allowed during the year – £30k
• bad debts written off during the year – £15k
• closing accounts receivable – £265k

What were the sales during the year?

Select ONE answer:

1. £490k
2. £535k
3. £550k
4. £580k

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct = (£520k + £30k + £15k + £265k) – £280k = £550k
4. Not correct

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