At 30 June 2018, Ruby Ltd had net accounts receivable of $180 000. At 30 June 2019 accounts receivable were $220 000 and sales for the year amounted to $ 1800 000. Doubtful debts expense was $55 000 for the year. DisCount allowed was $35 000 for the year. Required Calculate cash received from customers by Ruby Ltd for the your ended 30 June 2019?
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
At 30 June 2018, Ruby Ltd had net
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