The balance in Accounts receivable was $650000 at the beginning of the year and $760000 at the end of the year. Credit Sales totaled $4,130,000. During the year, $410,000 in customer accounts were written off. How much cash was collected from customers during the period?

Question

Business

Lorena Frazier

27 May, 17:43

The balance in Accounts receivable was $650000 at the beginning of the year and $760000 at the end of the year. Credit Sales totaled $4,130,000. During the year, $410,000 in customer accounts were written off. How much cash was collected from customers during the period?

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Answers (1)

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Valentino Cooke · Answer 1

Cash = $3,610,000

Explanation:

Debit: Cash?

Debit: Bad Debt Expense $410,000

Debit: Accounts Receivables $110,000

Credit: Sales $4,130,000

Account Receivables for the period = Closing Balance - Opening Balance

Account Receivables for the period = $760,000 - $650,000 = $110,000

Cash = Credit Sales - Accounts Receivables for the period - Bad Debt Expense

Cash = $4,130,000 - $110,000 - $410,000

Cash = $3,610,000