Accounts receivable written-off as uncollectible during the year amounted to $12

Question

Accounts receivable written-off as uncollectible during the year amounted to $12,700. The accounts receivable balance at the beginning of the year was $270,000. The accounts receivable balance at the end of the year was $330,000. The allowance for doubtful accounts balance at the beginning of the year was $15,200. The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $14,100. Credit sales during the year totaled $960,000. How much cash was received from collections of accounts receivable?Accounts receivable written-off as uncollectible during the year amounted to $12,700. The accounts receivable balance at the beginning of the year was $270,000. The accounts receivable balance at the end of the year was $330,000. The allowance for doubtful accounts balance at the beginning of the year was $15,200. The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $14,100. Credit sales during the year totaled $960,000.

How much cash was received from collections of accounts receivable?

Explanation / Answer

Provision for Doubtful debts Opening Balance        15,200 Bad debts written off     (12,700) Less Closing balance     (14,100) Additional Provision made (Total Of above)     (11,600) Account receivable Opening AR     270,000 Add Credit Sale     960,000 Less Provision made     (11,600) Less closing Balance (330,000) Cash Collection (Total Of above)     888,400

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