On May 1, Jensen's had a beginning cash balance of $284. April sales were $810 and May sales were $960. During May, cash expenses were $360 and payments on accounts payable were $630. The accounts receivable period is 30 days. What is the beginning cash balance on June 1?

Question

Quizplus · Accepted Answer

The beginning cash balance on June 1 is calculated by taking the beginning cash balance on May 1 ($284), adding the cash received from April sales ($810, since the accounts receivable period is 30 days), and subtracting the cash expenses ($360) and payments on accounts payable ($630). This results in a balance of $104.

On May 1, Jensen's Had a Beginning Cash Balance of $284