Question

the accounts receivable account has a beginning balance of $39500 and an ending balance of $56200. if total sales on account were $31900 for the year, what were the total collections on account?

Answer 1

The total collections on account were $15,200.

Step-by-step explanation:

To find the total collections on account, we need to calculate the change in the accounts receivable balance. The change can be calculated by subtracting the beginning balance from the ending balance:

Change in accounts receivable = Ending balance - Beginning balance

Change in accounts receivable = $56,200 - $39,500 = $16,700

Since total sales on account were $31,900, we can subtract the change in accounts receivable from total sales to get the total collections on account:

Total collections on account = Total sales - Change in accounts receivable

Total collections on account = $31,900 - $16,700 = $15,200

Answer 2

The total collections on account for the year were $15,200, calculated by adding the beginning balance of accounts receivable to the total sales on account and subtracting the ending balance of accounts receivable.

Step-by-step explanation:

To calculate the total collections on account, we need to look at the change in the accounts receivable balance and the total sales on account during the year. The formula to calculate collections is:

Beginning Accounts Receivable + Sales on Account - Ending Accounts Receivable = Collections on Account.

If the beginning balance of accounts receivable was $39,500 and the ending balance was $56,200, and the total sales on account were $31,900, then the collections on account would be:

Calculations: $39,500 + $31,900 - $56,200 = $15,200.

Therefore, the total collections on account for the year were $15,200.