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NEW QUESTION: 1
An internal auditor is deriving cash flow data based on an incomplete set of facts. Bad debt expense was US $2,000. Additional data for this period follows:

How much cash was collected this period on credit sales?
A. US $68,500
B. US $64,000
C. US $70,000
D. US $68,000
Answer: D
Explanation:
The beginning balance of gross accounts receivable (A/R) was US $5.000debit). Thus net beginning A/R was US $4,500$5,000 - $660 credit in the allowance for bad debts. The allowance was credited for the US $2,000 bad debt expense. Accordingly, the ending allowance credit) was US $1 .500$500 - $1.000 write-off - $2,000)_ CT...9n a US $30.000 increase net A/R. ending net A/R must have been US $34,500$4,500 beginning net A/R T $30,000), with ending gross ,4/R of US $36,000$34,500 + $1,500). Collections were therefore US $68.000$5,000 beginning gross A/R - $1.000 write-off T $100,000


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