The CHS Company Has Provided the Following Information

question 60

Multiple Choice

The CHS Company has provided the following information:
Accounts receivable written-off as uncollectible during the year amounted to $11,500.
The accounts receivable balance at the beginning of the year was $150,000.
The accounts receivable balance at the end of the year was $210,000.
The allowance for doubtful accounts balance at the beginning of the year was $14,000.
The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $12,900.
Credit sales during the year totaled $900,000.
How much cash was received from collections of accounts receivable?

• A)$888,500
• B)$828,500
• C)$690,000
• D)$701,500

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Definitions:

Credibility

The quality of being trusted and believed in, often resulting from a demonstrated record of reliability and integrity.

Reciprocity

Reciprocity is a social norm that involves mutual exchange, where actions or benefits provided by one party are returned by another.

ACE Model

A conceptual framework focusing on Awareness, Commitment, and Execution, used in various contexts to improve performance and outcomes.

Effectiveness

The degree to which objectives are achieved, reflecting the capability of producing a desired result.