A company started the year with $435,000 of accounts receivable and a credit balance in the allowance for doubtful accounts of $3,500. During the year the following events were recorded: Accounts written off during the year $3,500 Accounts recoveries during the year $450 Credit sales for the year $800,000 At the end of the year the company has $380,000 of accounts receivable and has determined, using the aging method, that the net realizable value of the accounts receivable is $375,000. What was the amount of total cash collections from accounts receivable customers this year? $854,550 $852,400 $855,000 correct $851,950 Beginning AR – Write-offs + Recoveries + Credit sales for the year – Cash collections = Ending AR.

A company started the year with $435,000 of accounts receivable and a credit balance in the allowance for doubtful accounts of $3,500. During the year the following events were recorded:

Accounts written off during the year	$3,500
Accounts recoveries during the year	$450
Credit sales for the year	$800,000

At the end of the year the company has $380,000 of accounts receivable and has determined, using the aging method, that the net realizable value of the accounts receivable is $375,000. What was the amount of total cash collections from accounts receivable customers this year?

 

	$854,550
	$852,400
	$855,000
	$851,950

Beginning AR – Write-offs + Recoveries + Credit sales for the year – Cash collections = Ending AR.