Question

On December 31, 2016, Alsfeld Company had a $122,550 balance in Accounts Receivable. During the year 2017, the company collected $200,000 from its credit customers. The December 31, 2017 balance of the Accounts Receivable was $170,650.

Determine the amount of sales on accounts for 2017.

what is the right answer?

A. $156,000
B. $248,100
C. $253,100
D. $156,900

Answer 1

Answer:

B. $248,100

Explanation:

The difference between the receivables balance at the start of the year and at the end is as a result of credit sales to customers( increase receivables balance ) and cash collected from customers ( reduces the receivables balance).

Let the amount of sale on account be Y

$122,550 + Y - $200,000 = $170,650.

Y = $170,650 + $200,000 - $122,550

Y = $248,100