Sage company had a 300000 balance in accounts receivable on


Sage Company had a $300,000 balance in Accounts Receivable on January 1.The balance in Allowance for Bad Debts on January 1 was $36,000. Sales for the year totaled $1,700,000. All sales were credit sales. Bad debts expense is estimated to be 2% of sales. Write-offs of uncollectible accounts for the year were $28,000. The debit balance in Accounts Receivable on December 31 was $345,000. All receivables are trade receivables. Sage uses the direct method in preparing its statement of cash flows.

Instructions:

What is the amount of cash collected from customers?

 

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Accounting Basics: Sage company had a 300000 balance in accounts receivable on
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