Question

The balance in Accounts Receivable at the beginning of the year amounted to $1,920. During the year, $7,160 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $1,220, and uncollectible accounts expense amounted to $500, 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:

$7,360

Explanation:

To determine the amount of cash inflow from customers open a Total Receivable Account and determine the Cash Balance.

Total Receivable T - Account

Debit :

Beginning Balance                                           $1,920

Credit Sales                                                       $7,160

Total                                                                  $9,080

Credit :

Uncollectable expense                                      $500

Cash Received (Balancing figure)                   $7,360

Ending  Balance                                                $1,220

Total                                                                  $9,080

Conclusion :

the amount of cash inflow from customers is $7,360