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16 March, 22:47

During 2019, its second year in operation, Sanborn Company delivered goods to customers equal to $6,250,000. The amount of cash collected from customers was $6,360,000. The amount of accounts receivable at the beginning of 2019 was $1,200,000. Based on this information, what is the amount of accounts receivable that Sanborn should report at the end of 2019

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  1. 17 March, 00:51
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    Accounts receivable to be reported at the end of 2019 = $1090000

    Explanation:

    Assuming that all sales are made on credit.

    The opening accounts receivable were = $ 1200000

    We add the credit sales made during the year to the opening balance of accounts receivable to reach at total accounts receivable.

    Total accounts receivable = 1200000 + 6250000 = 7450000

    We deduct the amount received from customers against these sales to reach at the closing balance for accounts receivables.

    Closing balance Accounts receivables 2019 = 7450000 - 6360000 = $1090000
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