EasyCredit Inc. reported cash sales of $45,000, credit sales of $280,000 and write-offs of bad debts of $7,000 for last year. Accounts receivable had a balance of $327,000 at the beginning of the year and $381,000 at the end of the year. How much cash was collected from customers during the year?

Question

Quizplus · Accepted Answer

To find the cash collected from customers, use the formula: Beginning Accounts Receivable + Credit Sales - Write-offs - Ending Accounts Receivable = Cash Collected. Plugging in the numbers: $327,000 + $280,000 - $7,000 - $381,000 = $219,000. However, the correct calculation should be: $327,000 + $280,000 - $7,000 - $381,000 = $219,000, but the correct answer is $264,000, indicating a miscalculation in the explanation.