Determining collections on account

During $20$X$1,$ Kerry Corporation, a service organization, had $$200,000$ in cash sales and $$3,000,000$ in

credit sales. The accounts receivable balances were $$400,000$ and $$485,000$ at December $31,20$X$0$ and

$20$X$1,$ respectively.

Required:

What was the amount of Kerry Corporation$$s cash receipts from sales in $20$X$1?$

Credit sales

Ending accounts receivable

Beginning accounts receivable

Less: Increase in accounts receivable

Cash collections on account

Cash sales

Total cash receipts

An alternative solution would be to use T$-$account analysis of accounts receivable, as follows:

Beginning balance

Sales on account

Ending balance

BB $+$ Credit Sales $$ Cash Collections $=$ EB

Total cash receipts from sales:

Cash collections on account

Cash sales

Total cash receipts