The balance in the Accounts Receivable account decreased from $18,000 at the beginning of the month to $15,000 at the end of the month. Sales on account during the month totaled $130,000. No accounts receivable were written off as uncollectible during the month. Cash collections of accounts receivable during the month totaled:

a. 127,000

b. 130,000

c. 133,000

d. 145,000

Question

Business

Alejandra Hester

29 April, 00:12

The balance in the Accounts Receivable account decreased from $18,000 at the beginning of the month to $15,000 at the end of the month. Sales on account during the month totaled $130,000. No accounts receivable were written off as uncollectible during the month. Cash collections of accounts receivable during the month totaled:

a. 127,000

b. 130,000

c. 133,000

d. 145,000

+4

Answers (1)

Know the Answer?

Velazquez · Answer 1

Answer: The answer is c. 133,000.

Explanation: Accounts receivable is a current asset in the balance sheet (statement of financial position). Meaning, it easily can be converted to cash. The amount schedule of account receivable usually looks like this:

Opening balance $18,000

+Addition 130,000

-Receipt (cash) X

=Closing balance $15,000

To find X, simply change the subject of the formula as:

$18,000 + $130,000 - X = $15,000

$148,000 - X = $15,000

X = $148,000 - $15,000

X = $133,000 Receipt (cash)