Question

Tanya Company has the following​ information: Accounts​ Receivable, January​ 1, 20xx ​$230,000 Accounts​ Receivable, December​ 31, 20xx ​400,000 Credit Sales ​1,810,000 Cash Sales ​1,000,000 Writeminusoffs of uncollectible accounts ​14,000 What are collections from customers during the current​ year?

Answer 1

Answer:

$2,626,000

Explanation:

The computation of  collections from customers is shown below:

Ending balance of accounts receivable = Beginning balance + credit sales - customers’ accounts collected - write off amount

$400,000 = $230,000 + $1,810,000 - customers’ accounts collected - $14,000

$400,000 = $2,026,000 - customers’ accounts collected

So, the customer account collected would be

= $2,026,000 - $400,000

= $1,626,000

And, the cash sales is $1,000,000

So, the total amount collected would be

= $1,626,000 + $1,000,000

= $2,626,000

Since the question does not specify anything. So we take both the cash sales and the credit sales