The CHS Company has provided the following information: • Accounts receivable wr

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

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