The balance in Accounts Receivable at the beginning of the period amounted to $1,600. During the period $6,400 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $1,000, and uncollectible accounts expense amounted to $400, then the amount of cash inflow from customers that would appear in the operating section of the cash statement would be:
A)$6,600.
B)$6,400.
C)$8,000.
D)None of these.

Question

Quizplus · Accepted Answer

$1,600 beginning accounts receivable balance + $6,400 credit sales - $1,000 ending accounts receivable balance = $7,000 cash collected from customers; The $400 in uncollectible accounts expense does not affect accounts receivable, and does not affect cash flows.

The Balance in Accounts Receivable at the Beginning of the Period