Answer:
$3,100
Explanation:
Step 1: Draw up the Accounts Receivable Account
Opening Balance $600 Allowance for Doubtful debt $200
Sales $3,200 Cash Collected $3,100
Closing Balance <u>$500</u>
<u>$3,800</u> <u>$3,800 </u>
To calculate the cash collected from customers
first, add the debit side of the accounts receivable which is a sum of the opening balance and sales= 3,800
Secondly, add the figures in the credit side including allowance for doubtful debt and closing balance= $700
Thirdly, Subtract the lesser side from the greater, $3,800 - $700 = $3,100
$3,100 was cash collected from the customers in 2016
