This month,a company recorded sales revenue of $50,000 from sales of goods to customers who agreed to pay later.Next month,the company received payment from customers of $45,000.Choose the TRUE statement.

Question

Quizplus · Accepted Answer

The sales revenue for this month is $50,000 as recorded. The payment received next month from customers is not revenue, but a collection of accounts receivable. Therefore, the accounts receivable at the end of next month will be $5,000, calculated as follows: accounts receivable at the end of this month ($50,000 - $45,000) = $5,000. Accounts payable is not provided in the information given, so option C is not correct. Option A is incorrect because the revenue for next month cannot be determined from the information given.

This Month,a Company Recorded Sales Revenue of $50,000 from Sales