Sage Company had a $300,000 balance in Accounts Receivable on January 1.The balance in Allowance for Bad

Question:

Sage Company had a $300,000 balance in Accounts Receivable on January 1.The balance in Allowance for Bad Debts on January 1 was $36,000. Sales for the year totaled $1,700,000. All sales were credit sales. Bad debts expense is estimated to be 2% of sales. Write-offs of uncollectible accounts for the year were $28,000. The debit balance in Accounts Receivable on December 31 was $345,000. All receivables are trade receivables. Sage uses the direct method in preparing its statement of cash flows.

Instructions:
What is the amount of cash collected from customers?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

Question Posted: