Question

​Mid-Town Auto Parts Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for​ 2019: 1. Sales​ Revenue, $519,000 2. Accounts​ Receivable, beginning​ balance, $97,000 3. Accounts​ Receivable, ending​ balance, $65,000 Compute the collections from customers.

Answer 1

Collection from Customers =$487,000

Step-by-step explanation:

Collection from Customers=account receivable beginning balance+sales revenue-account receivable ending balance

=97000+$519,000-$65,000

=$487,000