If sales are $850,000 and the beginning and ending balances of accounts receivable are $43,000 and $48,000,respectively,the cash collected from customers is:
A)$850,000
B)$802,000
C)$845,000
D)$855,000

Question

Quizplus · Accepted Answer

The cash collected from customers is calculated by adjusting sales for the change in accounts receivable. The increase in accounts receivable is $5,000 ($48,000 - $43,000), so cash collected is $850,000 - $5,000 = $845,000.

If Sales Are $850,000 and the Beginning and Ending Balances