In this period, a company recorded sales revenue of $50,000 from sales of goods to customers who agreed to pay later. In the next period, the company received payment from customers of $45,000. Choose the TRUE statement.

Question

Quizplus · Accepted Answer

The company recorded sales revenue of $50,000 in the first period, but only received $45,000 in cash in the second period. This means that $5,000 of accounts receivable (money owed to the company by customers) remained at the end of the first period. Therefore, the statement that accounts receivable at the end of this period is $5,000 is true. The other statements are not accurate based on the information provided.

In This Period, a Company Recorded Sales Revenue of $50,000