Strata Company had a $275,000 balance in Accounts Receivable on January 1. The balance in Allowance for

Question:

Strata Company had a $275,000 balance in on January 1. The balance in Allowance for Bad Debts on January 1 was $68,000. Sales for the year totaled $2,100,000. All sales were credit sales. Bad debts expense is estimated to be 3% of sales. Write-offs of uncollectible accounts for the year were $58,000. The debit balance in on December 31 was $335,000. All receivables are trade receivables. Strata 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...