The balance in accounts receivable at the beginning of 2016 was $640. During 201
ID: 2475283 • Letter: T
Question
The balance in accounts receivable at the beginning of 2016 was $640. During 2016, $1,900 of credit sales were recorded. If the ending balance in accounts receivable was $240 and $200 in accounts receivable were written off during the year, the amount of cash collected from customers during 2016 was:
The balance in accounts receivable at the beginning of 2016 was $640. During 2016, $1,900 of credit sales were recorded. If the ending balance in accounts receivable was $240 and $200 in accounts receivable were written off during the year, the amount of cash collected from customers during 2016 was:
Explanation / Answer
Particulars
Amount
accounts receivable at the beginning of 2016
640
Add: credit sales
1,900
Total
2,540
Less:accounts receivable written off during the year
200
Total
2,340
Less:accounts receivable at the ending of 2016
240
cash collected from customers during 2016
2,100
Hence Option 2 is correct
Particulars
Amount
accounts receivable at the beginning of 2016
640
Add: credit sales
1,900
Total
2,540
Less:accounts receivable written off during the year
200
Total
2,340
Less:accounts receivable at the ending of 2016
240
cash collected from customers during 2016
2,100
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