Question

Sales on account (all are collectible) amounted to $560,000 during 2019. Accounts receivable were $112,000 on January 1, 2019 and $98,000 on December 31, 2019. How much cash was collected from customers during the year ended December 31, 2019?

Answer 1

Answer:

$574,000

Explanation:

For we to be able to know how much cash has been received during 2019, we should use this formula:

The formula is given as

cash collected = total sales on initial accounts receivables + account - ending accounts receivables.

Which we have in numerical as;

cash received for the period of 2019 = $112,000 + $560,000 - $98,000 = $574,000

So the final answer is $574,000

Answer 2

Answer:

Cash collected from customers =$574,000.

Explanation:

The cash collected ca be worked out using the formula below:

Opening balance of account. receivable + sales on account - Closing balance of account  receivable

Note that addition credit sales increases the amount in the receivable account.

So we can apply this formula as follows:

112,000 + 560,000 - 98,000

=  $574,000.

Cash collected from customers =$574,000.