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ABC reports sales of $100 million. Accounts receivable at the beginning and end of the year are $6 million and $9 million, respectively. What is the amount of cash received from customers? (in millions
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ABC reports sales of $100 million. Accounts receivable at the beginning and end of the year are $6 million and $9 million, respectively. What is the amount of cash received from customers? (in millions)

User Bob Tway
by
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1 Answer

5 votes

Answer:

the amount of cash received from customers is $97 million.

Step-by-step explanation:

The cash received from customers can be determined by opening a Total Receivables T-Account.

Total Receivables T-Account

Debit :

Beginning Balance $6 million

Sales $100 million

Totals $106 million

Credit :

Ending Balance $9 million

Cash Received from Customers (Balancing figure) $97 million

Totals $106 million

User Ankur Bhadania
by
4.5k points
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