What amount of cash did sheridan collect during the year


The following pertains to Sheridan Company for the year ended 12-31-10. Sheridan estimates its allowance for doubtful ARs using an aging analysis. During the year, there were no subsequent collections of ARs previously written off.


• Gross accounts receivable, 12-31-09 $ 715,000
• Gross accounts receivable, 12-31-10 $ 700,000
• Provisions for uncollectible accounts recorded during the year ended 12-31-10 4% of credit sales
• Estimated uncollectible accounts per the aging analysis, 12-31-10 $ 225,000
• Allowance for uncollectible accounts, 12-31-09 $ 239,000
• Total gross sales during the year ended 12-31-10 $9,000,000
• 77% of Sheridan's sales are made on a credit basis

What amount of cash did Sheridan collect during the year ended 12-31-10 relating to its total sales?

 

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