Newsome Corporation had accounts receivable of $100,000 at the beginning of the year and $145,000 at the end of the year. Sales for the year amounted to $575,000. Cash collections from customers are:
A)$45,000.
B)$475,000.
C)$530,000.
D)$575,000.

Question

Quizplus · Accepted Answer

Cash collections from customers can be calculated by taking the beginning accounts receivable, adding sales, and subtracting the ending accounts receivable: $100,000 + $575,000 - $145,000 = $530,000.

Newsome Corporation Had Accounts Receivable of $100,000 at the Beginning