On January 1, Year 2, Grande Company had a $74,600 balance in the Accounts Recei
ID: 2545800 • Letter: O
Question
On January 1, Year 2, Grande Company had a $74,600 balance in the Accounts Receivable account and a $3,700 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $208,000 of service on account. The company collected $258,900 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account. Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:
A.2080 B.3780 C.258900 D.21700
Explanation / Answer
In Cash flow from operating activities of statement of cash flow includes cash collection from customer.
so in question cash collection from customer is $258900
so answer is c) $258900