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BlackZzzverrR [31]
3 years ago
11

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
Business
1 answer:
babunello [35]3 years ago
3 0

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

<u><em>Debit :</em></u>

Beginning Balance                                           $1,920

Credit Sales                                                       $7,160

Total                                                                  $9,080

<u><em>Credit :</em></u>

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

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