Daniels Company reported sales of $800,000, bad debt expense of $30,000, and an increase in net accounts receivable of $120,000 during the current year. What is the amount of cash collected from customers for the current year if the company did not record any write-offs during the current year?
A) $650,000
B) $680,000
C) $710,000
D) $800,000

Question

Quizplus · Accepted Answer

Cash collected from customers = Sales + Increase in net accounts receivable - Bad debt expense= $800,000 + $120,000 - $30,000= $650,000

Daniels Company Reported Sales of $800,000, Bad Debt Expense of $30,000