g The balance in Accounts Receivable at the beginning of the year amounted to $16,000. During the year, $64,000 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $10,000, and uncollectible accounts expense amounted to $4,000, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement

Question

Shaniya Grant

Business

15 March, 02:33

g The balance in Accounts Receivable at the beginning of the year amounted to $16,000. During the year, $64,000 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $10,000, and uncollectible accounts expense amounted to $4,000, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement

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Malachi Middleton · Answer 1

the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement is $66,000

Explanation:

The cash inflow from customers is presented on the face of Cash Flow Statement using the Direct Method.

Cash inflow from customers is calculated by opening a Total Accounts Receivables - T Account as follows:

Debits:

Beginning Balance $16,000

Sales $64,000

Totals $80,000

Credits:

Uncollectible Expense $4,000

Closing Balance $10,000

Cash (Balancing figure) $66,000

Totals $80,000

The Balancing figure represents the cash payment received from customers.