Vital Corporation reports beginning accounts receivable of $70,200 and ending accounts receivable of $67,900.If sales revenue on account is $950,200,how much cash must have been collected from customers during the period?
A) $952,500
B) $882,300
C) $880,000
D) $947,900

Question

Quizplus · Accepted Answer

To find the cash collected from customers, we start with the sales on account and adjust for the change in accounts receivable. The beginning accounts receivable is $70,200 and the ending accounts receivable is $67,900, which means $2,300 was collected (reduction in accounts receivable). Adding this to the sales on account of $950,200 gives us $952,500 ($950,200 + $2,300).

Vital Corporation Reports Beginning Accounts Receivable of $70,200 and Ending