Midpoint Ltd provided the following information for the year ended 30 June 2016.
Revenue $195 000
Accounts receivable 1 July 2015 20 000
Accounts receivable 30 June 2016 30 000
Bad debts written off during the year* 6 000
* Direct method (debit bad debts expense $6000; credit accounts receivable $6000).
Cash receipts from customers for the year ending 30 June 2016 were:

Question

Quizplus · Accepted Answer

Cash receipts from customers = Revenue + Increase in accounts receivable - Bad debts written off= $195,000 + ($30,000 - $20,000) - $6,000= $195,000 + $10,000 - $6,000= $195,000 + $4,000= $179,000

Midpoint Ltd Provided the Following Information for the Year Ended