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marshall inc. had beginning balances (january 1) of $200,000 and $5,000 for accounts receivable and the allowance for doubtful accounts, respectively. during the year, the company had the following transactions. note: indicate a subtraction in the operating activities section with a negative sign in the amount column. sales $900,000 write-off of accounts 1,000 cash collections on account receivable 850,000 bad debt expense recorded 2,800

Answer :

PARRAINGO

The cash receipts that will be reported from customers, in the operating activities section of the statement of cash flows would be $ 850, 000

How to find the cash receipts from customers ?

When using the direct method for the statement of cash flows, and given the details from Marshall Inc., the cash receipts from customers for the period would be:

= Sales for the period - Change in the balance of Accounts receivables - Write offs for the period

Sales for the period = $ 900, 000

Change in the balance of Accounts receivables :

= 249, 000 - 200, 000

= $ 49, 000

Write offs = $ 1, 000

The cash collections from Marshall Inc's customers is therefore :

= 900, 000 - 49, 000 - 1, 000

= $ 850, 000

In conclusion, using the direct method of cash flow statement accounting, the cash receipts from customers would be $ 850, 000.

Find out more on the direct method at https://brainly.com/question/15233182

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The question is :
Determine the cash receipts from customers reported in the operating activities section in the statement of cash flows assuming the direct method.

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