Question

Item3 Time Remaining 1 hour 49 minutes 36 seconds01:49:36 Item 3Item 3 Time Remaining 1 hour 49 minutes 36 seconds01:49:36 For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co. for the year ended December 31, 2019: Required: a. Sales on account (all are collectible) amounted to $762,000, and accounts receivable decreased by $22,700. How much cash was collected from customers?

Answer 1

Answer:

$784,700

Explanation:

The computation is shown below:

As we know that

Closing balance of account receivable = Opening balance of account receivable + credit sales - cash received

-$22,700 = $0 + $762,000 - cash received

So, the cash received is

= $762,000 + $22,700

= $784,700

By adding the credit sales and decrease in account receivable we can get the collected amount