On September 30, Valerian Co. had a $110,000 balance in Accounts Receivable. During October, the company collected $110,390 from its credit customers. The October 31 balance in Accounts Receivable was $104,000. Determine the amount of sales on account that occurred in October.

The correct answer is $104,390.

Explanation:

According to the scenario, the given data are as follows:

Accounts receivable on Sep.30 =  $110,000

Collected amount in Oct. = $110,390

Accounts receivable on Oct.31 = $104,000

So, we can calculate the sales on account in October by using following formula:

Sales = Closing Balance + Amt received from Creditor - Opening Acct Receivable

= $104,000 + $110,390 - $110,000

= $104,390

Hence, the sales on account during October is $104,390.

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