On may 31, the cash account of bottle's r us had a normal balance of $5,000. during may, the account was debited for a total of $12,200 and credited for a total of $11,500. what was the balance in the cash account at the beginning of may?

Question

Mathematics

Elle Murray

Today, 20:57

On may 31, the cash account of bottle's r us had a normal balance of $5,000. during may, the account was debited for a total of $12,200 and credited for a total of $11,500. what was the balance in the cash account at the beginning of may?

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Answers (1)

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Viviana Davenport · Answer 1

Since there are no special paameters mentioned to solve the problem, algebra will be employed.

What we have so far:

Total debit = $ 12,200

Total credit = $ 11,500

Total transactions = Total credit - Total debit

Final balance = $ 5,000

To solve:

Let us use the working equation: Initial Balance = Final Balance + |Total Transactions|

Initial Balance = $5,000 + |$11,500 - $12,200|

Initial Balance = $5,000 + |-$700| < - - - remember that - $700 is an absolute value which makes it positive.

Initial Balance = $5,700 < - - - What we are looking for.

Checking:

Early May: $5,700

Around May : $5,700 - Total Debit (Assumption)

Around May : $5,700 - $12,200 = - $6,500 (Assumption)

Around May: - $6,500 + Total Credit (Assumption)

Around May: - $6,500 + $11,500 = $5,000 (Assumption)

31st of May: $5,000 < - - - Proven

∴The answer is: $5,700, the initial balance at the beginning of May.