Ask Question
27 June, 11:46

The ending balance of accounts receivable was $74,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. Sales reported on the income statement were $385,500. Based on this information, the beginning balance in accounts receivable was:

+2
Answers (1)
  1. 27 June, 14:42
    0
    The beginning balance in accounts receivable was: $47,500

    Explanation:

    Sales reported on the income statement were $385,500, Accounts receivable increased of $385,500 during the period.

    Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. The company collected $359,000 from the sales. Accounts receivable decreased of $359,000 during the period.

    The beginning balance in accounts receivable = The ending balance of accounts receivable + Accounts receivable decreased during the period - Accounts receivable increased during the period = $74,000 + $359,000 - $385,500 = $47,500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The ending balance of accounts receivable was $74,000. Sales, adjusted to a cash basis using the direct method on the statement of cash ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers