Cash collections from customers during 2010 were $300,500,while net accounts receivable increased $5,000.Sales reported on the income statement were:

Question

Quizplus · Accepted Answer

The increase in net accounts receivable indicates that not all of the sales made during the year were collected in cash. Therefore, we need to add the increase in accounts receivable to cash collections to get the total sales made. 
Total sales = Cash collections + Increase in accounts receivable
= $300,500 + $5,000
= $305,500
Therefore, the best choice is C) $305,000.

Cash Collections from Customers During 2010 Were $300,500,while Net Accounts