During the year, Ravenna paid a $6,000 cash dividend and sold a piece of equipment for $3,000 that originally cost $6,000 and had accumulated depreciation of $4,000. The company did not retire any bonds or repurchase any of its own common stock during the year.
4-a. 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?
4-b. What does the amount of these credits represent?