During 2016, ABC Inc. Accounts Receivable balance decreased by $20,000. The company also accrued bad debt expense in the amount of $5,000 on credit sales of $500,000. $2,000 of accounts receivable were written off during the period. The company's cash collections from sales during 2016 was (assuming that the accrual-basis sales converted to cash basis):

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The cash collections can be calculated by adjusting the credit sales for changes in accounts receivable and write-offs: $500,000 (credit sales) - $20,000 (decrease in accounts receivable) - $2,000 (write-offs) = $515,000.