If accounts receivable increased $15,000 during the period,and sales totalled $135,000 for the same period,cash collections from customers were $120,000.

Question

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The increase in accounts receivable indicates that not all sales were collected in cash. If sales were $135,000 and accounts receivable increased by $15,000, it means $15,000 of sales were not collected in cash, so cash collections from customers were $135,000 - $15,000 = $120,000.

If Accounts Receivable Increased $15,000 During the Period,and Sales Totalled