During the year a firm reported that accounts receivable had increased by $35 000. If accrual basis sales were $200 000 the amount of cash received from customers during the year must have been:

Question

Quizplus · Accepted Answer

When accounts receivable increase by $35,000, it means that $35,000 of the sales were not collected in cash during the year. Therefore, to find the cash received from customers, subtract the increase in accounts receivable from the total sales: $200,000 - $35,000 = $165,000.

During the Year a Firm Reported That Accounts Receivable Had