Fitness Machines reported credit sales of $880,000 and bad debt expense of $250,000 for last year. Accounts receivable had a balance of $1,400,000 at the beginning of the year and $1,350,000 at the end of the year. Assuming there are no write-offs made during the year, how much cash was collected from customers during the year?

Question

Quizplus · Accepted Answer

To find the cash collected, use the formula: Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable = Cash Collected. So, $1,400,000 + $880,000 - $1,350,000 = $930,000.

Fitness Machines Reported Credit Sales of $880,000 and Bad Debt