Race World reported credit sales of $445,000, ending accounts receivable of $41,500, and beginning accounts receivable of $33,500.What is the amount of cash collected from customers?

Question

Quizplus · Accepted Answer

Cash collected from customers can be calculated by subtracting the change in accounts receivable from credit sales:
Cash collected = Credit sales - (Ending AR - Beginning AR)
Cash collected = $445,000 - ($41,500 - $33,500)
Cash collected = $445,000 - $8,000
Cash collected = $437,000. Therefore, the best choice is D.

Race World Reported Credit Sales of $445,000, Ending Accounts Receivable