Question

The balance in Accounts Receivable at the beginning of the year amounted to $16,000. During the year, $64,000 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $10,000, and uncollectible accounts expense amounted to $4,000, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement

Answer 1

Answer: $70,000

Explanation:

Accounts Receivable at the beginning of the year amounted to $16,000

During the year, $64,000 of credit sales were made to customers.

ending balance in Accounts Receivable amounted to $10,000, and uncollectible accounts expense amounted to $4,000,

The Amount to appear in the operating activities section of the cash flow statement is

$16,000+$64,000-$10,000= $70,000

Answer 2

Answer:

$74,000

Explanation:

Accounts Receivable can be seen in Balance Sheet date as a current asset which is being measured at Net Realizable Value. Accounts Receivable has a normal debit balance.

Beginning Account receivable $16,000

Add credit sales $64,000

Less Account Receivable net of Allowance

($10,000-$4,000) $6,000

Cash collection $74,000

Therefore the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement is $74,000