Chapter 13, Problem 4F15

Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year a as follows:

During the year, Ravenna paid a $6000 cash dividend and it sold a piece of equipment for $3,000 that had accumulated depreciation cost $6,000 and had accumulated depreciation of $4,000. The company did not retire my bonds a repurchase my of its own common stock during the year.

Required:
4. (To help answer this question, create an Accounts Receivable T-account and insert the beginning and ending balances.) If the company debited Accounts Receivable and credited Sales for $600,000 during the year, what is the total amount of credits recorded in Accounts Receivable during the year” What does the amount of these credits represent?