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lana [24]
3 years ago
8

The balance in accounts receivable at the beginning of 2021 was $640. During 2021, $2500 of credit sales were recorded. If the e

nding balance in accounts receivable was $170 and $300 in accounts receivable were written off during the year, the amount of cash collected from customers during 2021 was:
Business
1 answer:
sergey [27]3 years ago
6 0

Answer:$2,670

Explanation: the opening balance in the account receivable account for 2021 is $640. Credit sales for the year 2021 is $2500. End year balance for 2021 is $170, bad debts written off is $300.

To calculate the cash received in the year 2021.

Add opening acc receivable amount with credit sales for the month.

$640 + $2,500= $3,140

Less the balance at the year end from the above amount

$3,140-170= $2,970

From the above amount deduct the debts written off during the year

$2,970 - $300= $2,670

The total cash received during the year 2021 is $2, 670

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