For Engle Company, the balance in Accounts Receivable at the beginning of the period was $800. During the period $3,200 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $400, and uncollectible accounts of $200 were written off, the amount of cash inflow from customers that would appear in the operating section of the cash statement would be:
A) $3,400.
B) $3,200.
C) $4,000.
D) $3,300.

Question

Quizplus · Accepted Answer

The amount of cash inflow from customers that would appear in the operating section of the cash statement is $3,400. This is calculated by adding the beginning balance in Accounts Receivable ($800) to the credit sales made during the period ($3,200) and then subtracting the ending balance in Accounts Receivable ($400) and the uncollectible accounts written off ($200).

For Engle Company, the Balance in Accounts Receivable at the Beginning