Medical Machines reported credit sales of $800,000, cash collections of $550,000 and bad debt write-offs of $15,000 for last year. Accounts receivable had a balance of $1,000,000 at the beginning of the year. What was the ending balance in the accounts receivable account?

Question

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The ending balance in the accounts receivable account can be calculated by starting with the beginning balance, adding credit sales, and then subtracting cash collections and bad debt write-offs. So, the calculation is $1,000,000 (beginning balance) + $800,000 (credit sales) - $550,000 (cash collections) - $15,000 (bad debt write-offs) = $1,235,000.

Medical Machines Reported Credit Sales of $800,000, Cash Collections of $550,000