Credit Sales and Purchases

Accounting Question 1. Happy Company’s Accounts Receivable showed a normal balance of $46,300 on January 1, and $51,500 on January 31. During the month of January, they collected $78,300 from their credit customers in sales. What was the total credit sales for Happy in January?

Accounting Question 2. Happy Company’s Accounts Payable showed a (normal) balance of $76,300 on January 1, and $71,800 on January 31. During the month of January, they paid $82,900 to their suppliers. What was the total credit purchase for Happy in January?

Accounting Question 3. Happy Company’ Trial Balance on their accounting records as of December 31, 2005 reported the following accounts with their normal balances

B

Unearned Fees	$3,100		Common Stock	$ 103,000
Interest Expense	2,400		Building	69,800
Office Equipment	20,800		Prepaid Insurance	3,200
Office Supplies	2,600		Dividends	1,500
Retained earnings	1,600		Utilities Expense	?

What is Utilities Expense?




1. $83,500
2. $78,400
3. $7,400

Additional Links to Accounting Problems and Examples:

Accumulated Depreciation Balance Sheet

Revenue Recognition Principle
How to Calculate Net Income

Percent of Sales Method to Calculate Debt Expense

Calculating the Percent of Accounts Receivable Method for Estimating Bad Debts Expense
Accounting Financial Statements
Credit Sales and Purchases Accounting Problems

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