During the year, Rinks Corp.reported $510,000 in cash sales and $2,350,000 in credit sales.Beginning Accounts Receivable was $360,000 and ending Accounts Receivable was $475,000.What was the total cash collected from all customers during the year?

Question

Quizplus · Accepted Answer

The total cash collected from customers is calculated by adding cash sales to the change in accounts receivable. Cash collected = Cash sales + (Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable) = $510,000 + ($360,000 + $2,350,000 - $475,000) = $2,745,000.

During the Year, Rinks Corp