Question

During 2022 Concord Corporation had sales on account of $596000, cash sales of $235000, and collections on account of $342000. In addition, they collected $9200 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable balance from the beginning of the year to the end of the year indicates a:_______

Answer 1

Answer:

$254,000  

Explanation:

First and foremost,the cash of $9,200 collected in respect of debt already written off as uncollectible would not affect the balance in accounts receivable since the debt would reinstated and also taken out of accounts receivable simultaneously.

The change in accounts is the difference between the sales on account of $596,000 and collections in respect of accounts receivable of $342,000

change in accounts receivable=$596,000-$342,000=$254,000