Question

Bristol corporation reported a beginning balance of $6200 in accounts receivable on January at the beginning of the year and 5,334 million at the end of the year. Its statement of cash flows using the direct method reported cash collections from customers of 33.551 million for the year. Assuming that microchem corporation makes all sales on account, compute teh amount of sales during the year.

Answer 1

Answer: $32,685

Step-by-step explanation:

The closing balance of the accounts receivable account is;

Closing Balance = Opening Balance + Sales - Cash collections

Sales = Closing Balance - Opening Balance + Cash Collections

Sales = 5,334 - 6,200 + 33,551

Sales = $32,685