Ferrell Fine Meats reported sales revenue of $ 377,000 on the income statement. There has also been a decrease in the accounts receivable account in the amount of $ 12,000 when compared to prior year. Cash receipts from customers were therefore

Question

Quizplus · Accepted Answer

The decrease in accounts receivable indicates that more cash was collected than the sales revenue reported. Therefore, cash receipts from customers were $377,000 (sales revenue) + $12,000 (decrease in accounts receivable) = $389,000.

Ferrell Fine Meats Reported Sales Revenue of $ 377,000 on the Income