A customer reconciles their records with the supplier's statement. $ Supplier's statement balance 4 200 Payment sent by customer, not yet received by suppli...
Question 1 Report
A customer reconciles their records with the supplier's statement.
| $ | |
|---|---|
| Supplier's statement balance | 4 200 |
| Payment sent by customer, not yet received by supplier | 800 |
| Invoice on statement, not yet recorded in customer's ledger | 300 |
Answer Details
The correct answer is $3 100.
The customer's own purchases ledger records what the customer believes it owes. The supplier's statement shows $4 200 from the supplier's perspective. Two reconciling items need to be considered:
- The customer has sent a payment of $800 that the supplier has not yet received. This reduces the balance in the customer's books but not in the supplier's statement. So the customer's balance is lower by $800.
- An invoice of $300 appears on the supplier's statement but has not yet been recorded by the customer. This means the customer's books do not yet include this $300 liability.
Customer's ledger balance = $4 200 - $800 - $300 = $3 100.
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