Question

What is the amount of cash April Wood Products received from customers during the reporting period if its sales were $42.5 million? Prepare a summary entry that represents the net effect of the selling and collection activities during the reporting period.

Answer 1

Answer:

$38.5 million

Explanation:

Since the April Wood incoming transactions-accounts receivable increased by 4 million we obtain the cash value by substracting the question total accounts receivable value from the sales.

Where;

sales= $42.5 million

accounts receivable increase= $4 million

Amount of cash April Wood Products received from customers during the reporting period=

$42.5 million - $4 million= $38.5 million