Use the Reconciliation Approach to Determine Cash Received from Customers

question 86

Essay

Use the reconciliation approach to determine cash received from customers for the Boyd Company for 2014the year.Beginning and ending balances of accounts receivableAccounts Receivable were $6,500 and 5,900 respectively.Sales (all on account)amounted to $127,000.

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Definitions:

Owner's Drawings

Removal of funds or other valuables from a company by the proprietor for their personal benefit.

Cash

A form of liquid asset that represents immediately available funds for transaction, trade, and settling debts.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Service Revenue

Revenue received by a business from the services it offers to its clients.