Question
On January 1, Year 2, Grande Company had a $70,400 balance in the Accounts Receivable account and a $2,800 balance in the Allowance for Doubtful
On January 1, Year 2, Grande Company had a $70,400 balance in the Accounts Receivable account and a $2,800 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande recognized $187,000 of service revenue earned on account. The company collected $222,300 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account.
Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:
Multiple Choice
-
$222,300.
-
$2,970.
-
$33,400.
-
$1,870.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started