simmons company began the month with a balance of $80,000 in accounts receivable. an analysis of the account…

simmons company began the month with a balance of $80,000 in accounts receivable. an analysis of the account determined that sales on account for the month totaled $115,000. at the end of the month, the balance in accounts receivable was $86,000. from this information, it can be determined that simmons company had collections from customers on account of:\n\na. $109,000.\nb. $51,000.\nc. $121,000.\nd. $35,000.

simmons company began the month with a balance of $80,000 in accounts receivable. an analysis of the account determined that sales on account for the month totaled $115,000. at the end of the month, the balance in accounts receivable was $86,000. from this information, it can be determined that simmons company had collections from customers on account of:\n\na. $109,000.\nb. $51,000.\nc. $121,000.\nd. $35,000.

Answer

Explanation:

Step1: Recall accounts - receivable formula

The formula for ending accounts - receivable balance is: Ending Accounts Receivable = Beginning Accounts Receivable+Sales on Account - Collections. Rearranging the formula to solve for Collections gives: Collections = Beginning Accounts Receivable+Sales on Account - Ending Accounts Receivable.

Step2: Substitute the given values

We know that Beginning Accounts Receivable = $80,000, Sales on Account = $115,000, and Ending Accounts Receivable = $86,000. Collections=$80,000 + $115,000-$86,000$.

Step3: Calculate the result

$80,000+115,000 - 86,000=195,000 - 86,000 = 109,000$.

Answer:

A. $109,000