Question

Corporation began 2018 with a balance in Accounts Receivable of $ 580 comma 000. Service​ revenue, all on​ account, for the year totaled $ 2 comma 400 comma 000. The company ended the year with a balance in Accounts Receivable of $ 550 comma 000. Ridgewood​'s ​bad-debt write-offs are nonexistent. How much cash did the company collect from customers in 2018​?.

Answer 1

Answer:

The company collected for 2,430,000 during 2018

Explanation:

We solve using the accounts receivable identity:

$beginning + sales = ending + collection$

$580,000 + 2,400,000 = 550,000 + collection$

$collection = 580,000 + 2,400,000 - 550,000$

begining receivables   580,000

sales on account       2,400,000

ending  receivables    (550,000)

Collection from customer   2,430,000