Question

For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for Pelkey Co. for the year ended December 31, 2019:Required:a. Cash collected from customers during the year amounted to $874,000, and accounts receivable increased by $47,700. How much were sales on account for the year ended December 31, 2019?

Answer 1

$921,700

Step-by-step explanation:

Sales on account for the year ended December 31, 2019 is the cash collected from customers during the year and the increase in the accounts receivable. This can be calculated as follows:

Sales on account = $874,000 + $47,700 = $921,700

Therefore, sales on account for the year ended December 31, 2019 were $921,700.