The balance in Accounts Receivable at the beginning of the period amounted to $1,600. During the period $6,400 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $1,000, and uncollectible accounts expense amounted to $400, then the amount of cash inflow from customers that would appear in the operating section of the cash statement would be:

A $6,600.

B. $6,400.

C. $8,000.

D None of these.

On January 1, 2013, Karma Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $62,000 and $1,000, respectively. During the year Karma reported $145,000 of credit sales. Karma wrote off $1,100 of receivables as uncollectible in 2013. Cash collections of receivables amounted to $149,100. Karma estimates that it will be unable to collect one percent (1%) of credit sales.

Answer rating: 100% (QA)

D None of these 1600 beginning accounts receivable b... View the full answer