A business maintains control accounts as part of the double entry. At the end of a financial period, the sales ledger control account balance of $64 200 did not agree with the total of the individual sales ledger balances of the business.

The following errors were discovered.

1 An irrecoverable debt of $800, entered in the sales ledger control account, was omitted from the trade receivable account.
2 Discounts allowed of $950 were entered in the sales ledger accounts but were entered as $590 in the cash book.
3 A contra of $4100 between accounts in the sales and purchases ledgers was reversed in the control accounts.

There were no further errors.

What was the total of the trade receivables at the end of the period after adjustments?

Question

A business maintains control accounts as part of the double entry. At the end of a financial period, the sales ledger control account balance of $64 200 did not agree with the total of the individual sales ledger balances of the business.

The following errors were discovered.

1 An irrecoverable debt of $800, entered in the sales ledger control account, was omitted from the trade receivable account.
2 Discounts allowed of $950 were entered in the sales ledger accounts but were entered as $590 in the cash book.
3 A contra of $4100 between accounts in the sales and purchases ledgers was reversed in the control accounts.

There were no further errors.

What was the total of the trade receivables at the end of the period after adjustments?

Oracle Prep · Accepted Answer

The correct answer is B: $55 640

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