During the financial year Delilah Limited had sales of $284 000. The opening balance of accounts receivable was $36 000, and the closing balance was $45 000. Bad debts amounting to $2 600 were written off during the period. The cash receipts from sales during the year amounted to:

Question

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The cash receipts from sales can be calculated by adjusting the total sales for the change in accounts receivable and subtracting bad debts written off. The change in accounts receivable is the closing balance ($45,000) minus the opening balance ($36,000), which equals $9,000. This indicates that $9,000 of the sales were not collected in cash during the year. Therefore, the cash receipts from sales are $284,000 (total sales) - $9,000 (increase in accounts receivable) - $2,600 (bad debts written off) = $272,400.

During the Financial Year Delilah Limited Had Sales of $284