Question

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 $763,000, and accounts receivable decreased by $22,300. How much cash was collected from customers

Answer 1

Answer:

$785,300

Explanation:

Cash collected from customers is usually calculated using a Total Trade Receivable T - Account.

Summary of this calculation is done below :

Calculation of cash collected from customers

Sales                                                   $763,000

Add Decrease in Trade Receivables $22,300

Cash collected from customers       $785,300