Question

the balance in accounts receivable was $700,000 at the beginning of the year and $780,000 at the end of the year. credit sales for the year totaled $4,110,000. during the year, $430,000 in customer accounts were written off. how much cash was collected from customers during the period?

Answer 1

Cash Collected from Customers = Credit Sales - Change in Accounts Receivable + Write-offs

Cash Collected from Customers = $4,110,000 - $80,000 + $430,000

Cash Collected from Customers = $4,460,000

Therefore, $4,460,000 in cash was collected from customers during the period.