Cash collections from customers during the period can be computed as the ending balance in Accounts Receivable plus Sales during the period minus the beginning balance in Accounts Receivable.

Question

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The formula to calculate cash collections from customers during the period is the beginning balance in Accounts Receivable plus Sales during the period minus the ending balance in Accounts Receivable. This is because the beginning balance represents the unpaid balance from the previous period and the ending balance represents the unpaid balance at the end of the current period. Therefore, subtracting the ending balance from the sum of the beginning balance and sales would give the total amount of cash collected during the period.

Cash Collections from Customers During the Period Can Be Computed