Question

Johnson Mills reported the following information in its 2015 financial statements ($ in millions): 2015 2014 Balance Sheets: Accounts receivable, net $ 1,847.2 $ 1,524.4 2015 Income statement: Sales revenue $ 18,176.1 A note disclosed that the allowance for uncollectible accounts had a balance of $25.9 million and $26.5 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $16.8 million. Required: Determine the amount of cash collected from customers during 2015. (All sales are on credit. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

	Cash collections

Answer 1

Solution Given that Allowance foa doubtful accounts for 2014 - $26.5 million Bad doot tense bਰ 2015 = 16, 8 ਅY 1 (੧੦. .. balance afterwardle for doubtful account 2015 = $26.5 million + $ 16.8 million, 3843.3 million, The accounts receivable were written off during 2015 = $4313 m3 llom -$25.9 milion $17.4 million Now calculate cash collected from cuut omeng og fortows: cash collected from customeny = Begining balance of accounty Receivablet sales - Ending balance of accounty Pecelwable on - Accounts written and of = ( ,594.41 + 26.05 ) + 18,176,1 -(1847.2 + 95.9)-17.4 = 1550.9+ 18176.2 - 1873.1 -17.4 - 17,836.5 million