Question

Sweet Acacia Industries had a beginning balance in accounts receivable of $75,360 and an ending balance of $91,160. Credit sales during the period were $645,360. Determine cash collections.

Answer 1

Answer:

Cash collections = $629560

Explanation:

given data

beginning balance = $75,360

ending balance = $91,160

Credit sales = $645,360

to find out

Determine cash collections

solution

we get here Cash collections as

Cash collections = Opening balance - Closing balance + credit sales    ....................1

put here value we get

Cash collections = $75,360 - $91,160 + $645,360

Cash collections = $629560