Determine the amount of cash received from customers during 2016.
Accounts receivable (31-Dec-2015) $21 000
Accounts receivable (31-Dec-2016) 24 000
Sales 120 000

Question

Quizplus · Accepted Answer

The cash received from customers is calculated by adjusting the sales figure for the change in accounts receivable. The accounts receivable increased by $3,000 ($24,000 - $21,000), indicating that not all sales were collected in cash. Therefore, cash received = Sales - Increase in Accounts Receivable = $120,000 - $3,000 = $117,000.

Determine the Amount of Cash Received from Customers During 2016