To determine the total sales on account, we need to analyze the relationship between beginning and ending accounts receivable balances, collections from customers, and sales on account. Let's break this down step-by-step. Step-by-Step Explanation

1. Understanding Accounts Receivable:
2. Accounts receivable (A/R) represents money owed to a business by its customers for goods or services sold on credit.
3. The beginning balance is the amount owed at the start of the period, and the ending balance is the amount owed at the end of the period.
4. Given Data:
5. Beginning Accounts Receivable (A/R) = N8,000
6. Ending Accounts Receivable (A/R) = N15,000
7. Collections from customers during the period = N36,000
8. Formula for Sales on Account:
9. The formula to calculate total sales on account is: [ \text{Sales on Account} = \text{Collections} + (\text{Ending A/R} - \text{Beginning A/R}) ]
10. This formula accounts for the cash collected from customers and the change in accounts receivable over the period.
11. Calculating the Change in Accounts Receivable:
12. Change in A/R = Ending A/R - Beginning A/R
13. Change in A/R = N15,000 - N8,000 = N7,000
14. This means that during the period, the amount owed by customers increased by N7,000.
15. Plugging Values into the Formula:
16. Now, we can substitute the values into the formula: [ \text{Sales on Account} = N36,000 + N7,000 ]
17. Sales on Account = N43,000

Conclusion The total sales on account during the period is N43,000. Therefore, the correct option is D. Explanation of Other Options

• Option A: N23,000: This option is incorrect because it does not account for the increase in accounts receivable. It underestimates the total sales.
• Option B: N29,000: This option is also incorrect. It fails to consider the full amount of collections and the increase in accounts receivable.
• Option C: N36,000: This option only reflects the collections made during the period and ignores the increase in accounts receivable, which is crucial for calculating total sales.

Common Pitfalls

• Ignoring Changes in A/R: A common mistake is to only consider collections without accounting for the change in accounts receivable.
• Misunderstanding the Relationship: Students may confuse collections with total sales, leading to incorrect calculations.

Revision Summary

• Total sales on account can be calculated using the formula: Sales = Collections + (Ending A/R - Beginning A/R).
• Always account for changes in accounts receivable when calculating total sales.
• The increase in accounts receivable indicates that not all sales were collected in cash during the period.
• The correct answer for the total sales on account in this scenario is N43,000 (Option D).