Altoon Manufacturing's records were partially destroyed in a flood.The company does not know what sales have been for the year,but it does know all sales were on account.Also,the beginning accounts receivable balance was $19,000,and its accounts receivable balance at the time of the flood was $25,000.From the beginning of the year until the flood,cash collections from credit customers were $158,000.Given this information,what are Altoon Manufacturing's sales for the year until the flood?

Question

Quizplus · Accepted Answer

The sales can be calculated by adding the cash collections to the increase in accounts receivable: $158,000 (cash collections) + ($25,000 - $19,000) (increase in accounts receivable) = $164,000.

Altoon Manufacturing's Records Were Partially Destroyed in a Flood