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:

We post how the ending accounts receivable is solve for:

Begining AR 122,550

Sales on Account X

Collected     (200,000)  

Ending          170,650

And now, we work the equation to get sales on accounts:

Sales on account = ending + collected - beginning AR

sales = 170,650 + 200,000 - 122,550 =

Answer 2

Answer:

B. $ 248,100 is the sales on account

Explanation:

The Receivables movement is determined as follows:

Opening receivables + Net Sales - Collections = Closing balance

We solve this equation so that

Net sales = Closing balance + collections - opening balance

Net sales = $ 170,650 + $ 200,000 - $ 122,550

Net sales = $ 248,100