From the following information, determine the amount of cash received from customers during 2014.
Accounts receivable (31-Dec-2013) $63 000
Accounts receivable (31-Dec-2014) 54 000
Sales 270 000

Question

Quizplus · Accepted Answer

To calculate the cash received from customers, start with the sales figure and adjust for the change in accounts receivable. The sales were $270,000. Accounts receivable decreased from $63,000 to $54,000, indicating that $9,000 more cash was collected than the sales on credit. Therefore, cash received is $270,000 + $9,000 = $279,000.

From the Following Information, Determine the Amount of Cash Received