Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The bookstore prepares its statement of cash flows using the direct method. It requests you to calculate cash received from customers during the year 2019.

The bookstore prepares its statement of cash flows using the direct method. It requests you to calculate cash received from customers during the year 2019. For this purpose, the following information has been extracted from the trial balance of the company.

  • Accounts receivable on December 31, 2018: $62,000
  • Accounts receivable on December 31, 2019: $70,000
  • Allowance for doubtful accounts on December 31, 2018: $2,100
  • Allowance for doubtful accounts on December 31, 2019: $3,200
  • Sales for the year 2018: $155,300
  • Sales for the year 2019: $126,500

The bookstore sells goods on credit. For the year 2019, bad debts expense was $7,500 and accounts amounting to $6,400 were written-off.

Required: Compute cash received from customers to be reported in the statement of cash flows for the year 2019.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Philosophy Of Auditing

Authors: Robert K. Mautz

19th Edition

0865390029, 978-0865390027

More Books

Students also viewed these Accounting questions