Question

If a company had a beginning balance in Accounts Receivable of $4,000, collected $6,000 in cash from sales during the month, and had an ending balance in Accounts Receivable of $7,000, what were total sales during the month?

a) $9.000
b) $5,000
c) Cannot be determined from the information provided.
d) $6,000
e) $7,000

Answer 1

To find the total sales during the month, subtract the beginning balance of accounts receivable from the ending balance. Add this difference to the amount collected in cash from sales during the month.

Step-by-step explanation:

To find the total sales during the month, we need to calculate the change in accounts receivable.

The change in accounts receivable is the difference between the ending balance and the beginning balance. In this case, the change is $7,000 - $4,000 = $3,000.

Since the company collected $6,000 in cash from sales during the month, the total sales during the month would be $6,000 + $3,000 = $9,000.