Josh's trade receivables stand at £322,000 and he has a bank overdraft of £17,000 (a liability). A trade receivable pays the £22,000 owed and Josh pays this £22,000 into his bank account. What are the balances on trade receivables and the bank account after this receipt of cash?
A) Trade payables £300,000, Bank account £5,000 asset.
B) Trade payables £344,000, Bank account £5,000 asset.
C) Trade payables £300,000, Bank account £39,000 overdraft.
D) Trade payables £344,000, Bank account £39,000 overdraft.

Question

Quizplus · Accepted Answer

Trade receivables are reduced by £22,000 to £300,000. The bank overdraft is reduced by £22,000 to £5,000.

Josh's Trade Receivables Stand at £322,000 and He Has a Bank