During the current year, Tachnic, Inc., made cash sales of $285,000 and credit sales of $460,000. During

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During the current year, Tachnic, Inc., made cash sales of $285,000 and credit sales of $460,000.
During the year, accounts receivable decreased by $32,000.
a. Compute for the current year the amounts of:
1. Net sales reported as revenue in the income statement.
2. Cash received from collecting accounts receivable.
3.
Cash received from customers.
b. Write a brief statement explaining why cash received from customers differs from the amount of net sales.

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...
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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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