Accounts receivable on January 1 and December 31 is $19,500 and $22,400, respectively. During the year, sales revenue is $223,000. What is the current year's cash received from customers?

Question

Quizplus · Accepted Answer

The increase in accounts receivable ($22,400 - $19,500 = $2,900) indicates that not all sales were collected in cash. Cash received from customers is sales revenue minus the increase in accounts receivable: $223,000 - $2,900 = $220,100.

Accounts Receivable on January 1 and December 31 Is $19,500