Answer:$2,670
Explanation: the opening balance in the account receivable account for 2021 is $640. Credit sales for the year 2021 is $2500. End year balance for 2021 is $170, bad debts written off is $300.
To calculate the cash received in the year 2021.
Add opening acc receivable amount with credit sales for the month.
$640 + $2,500= $3,140
Less the balance at the year end from the above amount
$3,140-170= $2,970
From the above amount deduct the debts written off during the year
$2,970 - $300= $2,670
The total cash received during the year 2021 is $2, 670
