The sales revenue reported on the income statement for 20A totaled $96,000, of which one third was on credit. The 20A beginning balance of trade receivables was zero and the 20A ending balance reported on the statement of financial position was $10,000; therefore, the 20A cash inflow from customer sales was $86,000.

Question

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The cash inflow from customer sales is calculated by subtracting the ending balance of trade receivables from the total sales revenue. Since $32,000 (one third of $96,000) was on credit and the ending balance of trade receivables was $10,000, the cash inflow is $96,000 - $10,000 = $86,000.

The Sales Revenue Reported on the Income Statement for 20A