Anjili Company had credit sales of $1,400,000. The beginning accounts receivable balance was $165,000 and the ending accounts receivable balance was $280,000. Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period?
A) $1,615,000.
B) $1,400,000.
C) $1,285,000.
D) $1,565,000.

Question

Quizplus · Accepted Answer

Cash collections from customers can be calculated as: Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable = $165,000 + $1,400,000 - $280,000 = $1,285,000.

Anjili Company Had Credit Sales of $1,400,000