If sales are $680,000 and the beginning and ending balances of Accounts Receivable are $34,400 and $38,400,respectively,the cash collected from customers is:
A)$680,000.
B)$641,600.
C)$676,000.
D)$684,000.

Question

Quizplus · Accepted Answer

Increase in Accounts Receivable = Ending balance − Beginning balance
= $38,400 − $34,400 = $4,000
Cash collections = Net Sales − Increase in Accounts Receivable
= $680,000 − $4,000 = $676,000

If Sales Are $680,000 and the Beginning and Ending Balances