Crosby Company reported sales on account of $250,000, an increase in inventory of $70,000, and a decrease in accounts receivable of $20,000. _ was received from Crosby Company's customers.
A) $230,000
B) $320,000
C) $270,000
D) $180,000

Question

Quizplus · Accepted Answer

The decrease in accounts receivable of $20,000 indicates that more cash was collected than the sales on account. Therefore, cash received = sales on account ($250,000) + decrease in accounts receivable ($20,000) = $270,000.

Crosby Company Reported Sales on Account of $250,000, an Increase