A company's 2019 income statement reported total sales revenue of $1,200,000;accounts receivable increased by $25,000 and the unearned sales revenue account decreased $15,000 during 2019.How much cash was collected from customers during 2019?

Question

Quizplus · Accepted Answer

To calculate the cash collected from customers during 2019, we need to adjust the reported sales revenue for the change in accounts receivable and unearned sales revenue. 
Adjusted sales revenue = total sales revenue + decrease in unearned sales revenue - increase in accounts receivable 
= $1,200,000 - $15,000 - $25,000 
= $1,160,000 
Therefore, the cash collected from customers during 2019 was $1,160,000. The correct answer is B.

A Company's 2019 Income Statement Reported Total Sales Revenue of $1,200,000;accounts