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Margaret [11]
4 years ago
7

Newark Company has provided the following information: Cash sales, $500,000 Credit sales, $1,400,000 Selling and administrative

expenses, $380,000 Sales returns and allowances, $95,000 Gross profit, $1,410,000 Increase in accounts receivable, $60,000 Bad debt expense, $38,000 Sales discounts, $48,000 Net income, $1,030,000 How much cash was collected from customers
Business
1 answer:
USPshnik [31]4 years ago
4 0

Answer:

$1,840,000

Explanation:

The computation of the cash collected from customers is shown below:

Cash collected from customers = Cash sales + credit sales - increase in account receivable

= $500,000 + $1,400,000 - $60,000

= $1,900,000 - $60,000

= $1,840,000

By adding the cash sales, credit sales and deduct the increase in account receivable we can get the cash collected from customers and the same is shown above

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