Question

During 2017, Zippo Company had credit sales of $650,000, and the interest receivable balance increased by $10,000. In addition, the beginning accounts receivable balance was $15,000 and the ending accounts receivable balance was $140,000. Based upon this information, what were cash collections from customers in 2017

Answer 1

$525,000

Step-by-step explanation:

The computation of the cash collections from customers in 2017 is shown below:

As we know that

Cash collection from the customer = Opening balance of account receivable + credit sales - ending balance of account receivable

= $15,000 + $650,000 - $140,000

= $525,000

We simply applied the above formula to find out the cash collections from customer