Sales reported on the income statement were $372,000. The accounts receivable balance declined $4,500 over the year. The amount of cash received from customers was $367,500.

Question

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The cash received from customers is calculated by adjusting the sales reported on the income statement for the change in accounts receivable. If sales were $372,000 and accounts receivable declined by $4,500, it means that cash received is actually $372,000 + $4,500 = $376,500, not $367,500.

Sales Reported on the Income Statement Were $372,000