ZCMI, Inc., reported an increase in Accounts Receivable of $7,000 and cash collections on account of $428,000. Sales on account for the period were:

Question

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The increase in Accounts Receivable of $7,000 indicates that sales on account exceeded cash collections by this amount. Therefore, sales on account were $428,000 (cash collections) + $7,000 (increase in Accounts Receivable) = $435,000.

ZCMI, Inc, Reported an Increase in Accounts Receivable of $7,000 and and Cash