The balance in Accounts Receivable at the beginning of the year was $530,000. The balance in Accounts Receivable at the end of the year was $740,000. Customer accounts of $410,000 were written off. The company collected $4,100,000 from credit customers and $1,030,000 from cash customers. What are credit sales for the year?

Question

Quizplus · Accepted Answer

Credit sales can be calculated using the formula: Ending Accounts Receivable = Beginning Accounts Receivable + Credit Sales - Collections - Write-offs. Plugging in the values: $740,000 = $530,000 + Credit Sales - $4,100,000 - $410,000. Solving for Credit Sales gives $4,720,000.

The Balance in Accounts Receivable at the Beginning of the Year