On December 31, 2018, Frazier Company had a $61,275 balance in Accounts Receivable. During the year 2019, the company collected $100,000 from its credit customers. The December 31, 2019 balance of the Accounts Receivable was $85,325.
Determine the amount of sales on accounts for 2019.

Question

Quizplus · Accepted Answer

The amount of sales on accounts can be determined by adjusting the beginning Accounts Receivable balance with the cash collected and the ending balance. The formula is: Sales on Account = (Ending Accounts Receivable - Beginning Accounts Receivable) + Cash Collected. Plugging in the numbers: ($85,325 - $61,275) + $100,000 = $124,050.

On December 31, 2018, Frazier Company Had a $61,275 Balance