Question

The CHS Company has provided the following information:• Accounts receivable written-off as uncollectible during the year amounted to $12,400.• The accounts receivable balance at the beginning of the year was $240,000.• The accounts receivable balance at the end of the year was $300,000.• The allowance for doubtful accounts balance at the beginning of the year was $14,900.• The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $13,800.• Credit sales during the year totaled $945,000.How much cash was received from collections of accounts receivable?

Answer 1

The cash that was received from collections of accounts receivable is $872,600

Step-by-step explanation:

Cash collections

= Begining A/R balance + Credit Sales - Ending A/R balance - write-offs

= $240,000 + $945,000 - $300,000 - $12,400

= $872,600

Therefore, The cash that was received from collections of accounts receivable is $872,600