During the year, Alfa Limited reported credit sales of $850,000.Beginning Accounts Receivable was $60,000 and ending Accounts Receivable was $140,000.What were the cash collections from customers during the year?

Question

Quizplus · Accepted Answer

The cash collections from customers during the year can be calculated as follows:
Cash collections = Credit sales - increase in accounts receivable
= $850,000 - ($140,000 - $60,000)
= $850,000 - $80,000
= $770,000. Therefore, the correct answer is option C.

During the Year, Alfa Limited Reported Credit Sales of $850,000