Determining Cash Receipts-Direct Method Marshall Inc. had beginning balances (January 1) of $500,000 and $12,500 for accounts receivable and the allowance for doubtful accounts, respectively. During the year, the company had the following transactions. $2.250,000 2,500 Sales Write-off of accounts Cash collections on account receivable Bad debt expense recorded 2.125,000 7,000 1. Determine the cash receipts from customers reported in the operating activities section in the statement of cash flows assuming the direct method. $ 2. Reconcile sales to cash receipts from customers. $ Sales Change in accounts receivable balance Account write-offs Collection of accounts receivable previously written off Cash collections $