The balance in accounts receivable at the beginning of 2021 was $640. During 2021, $2500 of credit sales were recorded. If the ending balance in accounts receivable was $170 and $300 in accounts receivable were written off during the year, the amount of cash collected from customers during 2021 was:

Question

Jamarcus Mayo

Business

29 October, 20:32

The balance in accounts receivable at the beginning of 2021 was $640. During 2021, $2500 of credit sales were recorded. If the ending balance in accounts receivable was $170 and $300 in accounts receivable were written off during the year, the amount of cash collected from customers during 2021 was:

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Xzavier Donaldson · Answer 1

Answer:$2,670

Explanation: the opening balance in the account receivable account for 2021 is $640. Credit sales for the year 2021 is $2500. End year balance for 2021 is $170, bad debts written off is $300.

To calculate the cash received in the year 2021.

Add opening acc receivable amount with credit sales for the month.

$640 + $2,500 = $3,140

Less the balance at the year end from the above amount

$3,140-170 = $2,970

From the above amount deduct the debts written off during the year

$2,970 - $300 = $2,670

The total cash received during the year 2021 is $2, 670