Johnson Mills reported the following information in its 2015 financial statement

Question

Johnson Mills reported the following information in its 2015 financial statements ($ in millions) 2015 $ 2, 648.8 $1,926.0 $18,980.1 2014 Balance Sheets: Accounts receivable, net 2015 Income statement: Sales revenue A note disclosed that the allowance for uncollectible accounts had a balance of $37.9 million and $36.1 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $26.4 million Required: Determine the amount of cash collected from customers during 2015. (All sales are on credit. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Cash collections 18,232.7

Explanation / Answer

($ in millions) Allowance for uncollectible accounts: Balance, beginning of year $36.1 Add: Bad debt expense $26.4 Less: End of year balance ($37.9) Write­offs during the year $24.6 Accounts receivable analysis: Balance, beginning of year ($1,926.0 + $36.1) $1,962.1 Add: Credit sales $18,980.1 Less: Write­offs ($24.6) Less: Balance end of year ($2,648.8 + $37.9) ($2,686.7) Cash collections $18,230.9

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.