Skilling Corporation's accounts receivable account balance at the end of 2009 and 2010 was $1,000,000 and $1,750,000, respectively. During 2010, Skilling's sales were $3,000,000, and $100,000 of accounts receivable were written off. During 2010, how much cash did Skilling receive from its customers?

Question

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The cash received from customers can be calculated as: Beginning Accounts Receivable + Sales - Ending Accounts Receivable - Write-offs = $1,000,000 + $3,000,000 - $1,750,000 - $100,000 = $2,150,000.

Skilling Corporation's Accounts Receivable Account Balance at the End of 2009