Question

Accounts Receivable account has a beginning balance of $52,000 and an ending balance of $69,000. If $47,000 was sold on account during the year, what were the total collections on account

Answer 1

Answer:

$30,000

Explanation:

Total collections on account is computed as;

= Accounts receivable at the beginning + Sales during the year - Accounts receivable at the end

Given that;

Accounts receivable at the beginning = $52,000

Sales during the year = $47,000

Accounts receivable at the end = $69,000

Therefore,

Total collections on account

= [($52,000 + $47,000) - $69,000]

= $30,000