During 2015,Krug Company reported net sales of $1,025,000.During the year net accounts receivable increased $39,750 even though Krug wrote-off $7,150 of receivables as uncollectible;Krug uses the allowance method to account for bad debts.Krug's bad debt expense during 2015 was $20,500.How much cash was collected from customers during 2015?
A)$964,750
B)$957,600
C)$971,900
D)$1,037,100

Question

Quizplus · Accepted Answer

$1,025,000 (net sales)- $39,750 (the increase in net accounts receivable)- $20,500 (bad debt expense)= $964,750.The write-off of receivables does not impact net accounts receivable and is therefore irrelevant.

During 2015,Krug Company Reported Net Sales of $1,025,000