At January 1, 2012, Buckingham Inc.had accounts receivable €71,500.At December 31, 2012, accounts receivable is €53,800.Sales for 2012 total €412,000.What are Buckingham's 2012 cash receipts from customers?

Question

Quizplus · Accepted Answer

To calculate cash receipts from customers, we need to find out how much of the sales were collected in cash during the year.

We can do this by using the formula:

Cash receipts = Beginning accounts receivable + Credit sales - Ending accounts receivable

Substituting the values given:

Cash receipts = €71,500 + €412,000 - €53,800 = €429,700

Therefore, the answer is choice letter C.