The comparative balance sheets of Sloan Company reveal that accounts receivable (before deducting allowances) increased by $15,000 in 2016. During the same time period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2016 and bad debts expense was 3% of sales, how much cash was collected from customers during the year

$103,500

Explanation:

The computation of the cash collected from customers is shown below:

= Sales revenue - Increase in accounts receivable - written off  amount

where,

Increase in account receivable = $15,000

Sales revenue = $120,000

Since

Bad debt expense = 3% of sales

So, Bad debt expense

= $120,000 × 3%

= $3,600

Now the written off amount is

= $3,600 - $2,100

= $1,500

So, the cash collection from customers is

= $120,000 - $15,000 - $1,500

= $103,500

mcdonald's fast-food restaurants have a well-designed training program for all new employees. each new employee is supposed to learn how to perform standardized tasks required to maintain mcdonald's service quality. due to labor shortages in some areas, new employees begin work as soon as they are hired and do not receive any off-the-job training. this nonconformity to standards creates control loss.