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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.
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