Question

The following account balances come from the records of Ourso Company: Beginning Balance Ending Balance Accounts receivable $ 2,800 $ 3,600 Allowance for doubtful accounts 280 350 During the accounting period, Ourso recorded $14,000 of sales revenue on account. The company also wrote off a $150 account receivable. Required a. Determine the amount of cash collected from receivables.

Answer 1

Answer: $13,050

Explanation:

The Cash collected from receivables can be calculated by;

= Beginning Accounts Receivable + Sales revenue - Receivables written off - Ending Accounts Receivable

= 2,800 + 14,000 - 150 - 3,600

= $13,050