Question

Accounts receivable had a debit balance of $4,000 at the beginning of the period, and a debit balance of $3,000 at the end of the period. Credit sales for the period totaled $22,000. Using this information, cash receipts for the period totaled:

a. $26,000
b. $32,000
c. $28,000
d. $20,000

Answer 1

$23,000

Step-by-step explanation:

The computation of the cash receipts is shown below:

= Opening balance of account receivable + credit sales - ending balance of account receivable

= $4,000 + $22,000 - $3,000

= $23,000

We simply applied the above formula

Hence, the cash receipts is $23,000

The above is the answer.

The options that are given is wrong