[cpurg]

Melville Company reported sales of $700,000, bad debt expense of $60,000, and an increase in net accounts receivable of $150,000 during the current year. What is the amount of cash collected from customers for the current year if the company did not record any write-offs during the current year?
a. $550,000
b. $590,000
c. $610,000
d. $640,000

I am thinking a. 550,000 but unsure about the bad debt expense?

[paraclete]

Try b

[cpurg]

Thanks much - I understand now. The question said NET receivable so I have to add the debt expense to the sales for the year. I appreciate it :-)