Restless Company's 20B income statement reported total sales revenue of $100,000. The 20A-20B, comparative statements of financial position showed that trade receivables decreased by $10,000. What were the 20B "cash receipts from customers"?
A) $90,000.
B) $110,000.
C) $80,000.
D) $100,000.

Question

Quizplus · Accepted Answer

The decrease in trade receivables indicates that more cash was collected than sales made on credit. Therefore, cash receipts from customers would be sales revenue plus the decrease in receivables: $100,000 + $10,000 = $110,000.

Restless Company's 20B Income Statement Reported Total Sales Revenue of $100,000