The CHS Company has provided the following information: • Accounts receivable wr
ID: 2754415 • Letter: T
Question
The CHS Company has provided the following information: • Accounts receivable written-off as uncollectible during the year amounted to $12,400. • The accounts receivable balance at the beginning of the year was $240,000. • The accounts receivable balance at the end of the year was $300,000. • The allowance for doubtful accounts balance at the beginning of the year was $14,900. • The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $13,800. • Credit sales during the year totaled $945,000. How much cash was received from collections of accounts receivable? The CHS Company has provided the following information: • Accounts receivable written-off as uncollectible during the year amounted to $12,400. • The accounts receivable balance at the beginning of the year was $240,000. • The accounts receivable balance at the end of the year was $300,000. • The allowance for doubtful accounts balance at the beginning of the year was $14,900. • The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $13,800. • Credit sales during the year totaled $945,000. How much cash was received from collections of accounts receivable?Explanation / Answer
Cash collections = Begining A/R balance + Credit Sales - Ending A/R balance - write-offs
= 240,000 + 945,000 - 300,000 - 12,400
= $872,600