In 2012, Hope Company incurred sales on account of $100,000. The company also has the following information: $$\begin{array} { | l | c | c | }
\hline & \text { December 31, 2011 } & \text { December 31, 2012 } \
\hline \text { Accounts Receivable } & \$ 50,000 & \$ 20,000 \
\hline \text { Accounts Payable } & \$ 65,000 & \$ 40,000 \
\hline
\end{array}$$ What is the amount of cash received from customers for Hope Company in 2012?

Question

In 2012, Hope Company incurred sales on account of $100,000. The company also has the following information: $$\begin{array} { | l | c | c | } 
\hline & \text { December 31, 2011 } & \text { December 31, 2012 } \
\hline \text { Accounts Receivable } & \$ 50,000 & \$ 20,000 \
\hline \text { Accounts Payable } & \$ 65,000 & \$ 40,000 \
\hline
\end{array}$$ What is the amount of cash received from customers for Hope Company in 2012?

Quizplus · Accepted Answer

The cash received from customers is calculated as: Beginning Accounts Receivable + Sales on Account - Ending Accounts Receivable = $50,000 + $100,000 - $20,000 = $130,000.

In 2012, Hope Company Incurred Sales on Account of $100,000