Response to the following problem:
Transaction analysis using T-accounts
a. Accounts Payable had a balance of $3,000 at the beginning of the month and $3,400 at the end of the month. During the month, purchases on account amounted to $6,100. Calculate the payments to suppliers during the month.
b. Accounts Receivable had a balance of $21,400 at the beginning of the month and $19,800 at the end of the month. Cash collected from customers totaled $76,000 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.