During the current year,Todd Electronics had $610,000 in cash sales and $2,220,000 in credit sales.The Accounts Receivable balance was $530,000 at the beginning of the year and $425,000 at the end of the year.What was the total cash collected from customers during the year?
A) $2,935,000
B) $2,830,000
C) $2,725,000
D) $2,325,000

Question

Quizplus · Accepted Answer

The total cash collected from customers during the year is equal to the cash sales plus the amount collected on credit sales. The amount collected on credit sales is equal to the beginning balance of Accounts Receivable plus the credit sales minus the ending balance of Accounts Receivable. Therefore, the total cash collected from customers during the year is $610,000 + ($530,000 + $2,220,000 - $425,000) = $2,935,000.

During the Current Year,Todd Electronics Had $610,000 in Cash Sales