The CHS Company has provided the following information:
Accounts receivable written-off as uncollectible during the year amounted to $11,500.
The accounts receivable balance at the beginning of the year was $150,000.
The accounts receivable balance at the end of the year was $210,000.
The allowance for doubtful accounts balance at the beginning of the year was $14,000.
The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $12,900.
Credit sales during the year totaled $900,000.
How much cash was received from collections of accounts receivable?

Question

The CHS Company has provided the following information:
Accounts receivable written-off as uncollectible during the year amounted to $11,500.
 The accounts receivable balance at the beginning of the year was $150,000.
 The accounts receivable balance at the end of the year was $210,000.
 The allowance for doubtful accounts balance at the beginning of the year was $14,000.
 The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $12,900.
Credit sales during the year totaled $900,000.
How much cash was received from collections of accounts receivable?

Quizplus · Accepted Answer

Ending accounts receivable ($210,000) = Beginning accounts receivable ($150,000) - Accounts receivable write-offs ($11,500) + Credit sales ($900,000) - Cash collections ($828,500).

The CHS Company Has Provided the Following Information