During Year 2, Fancy Foods Incorporated earned $104,000 of revenue on account. The beginning balance in accounts receivable was $26,000, and the ending balance was $4,000. Based solely on this information, what was the amount of cash collected from accounts receivable?
A)$74,000
B)$82,000
C)$126,000
D)$134,000

Question

Quizplus · Accepted Answer

To find the cash collected, use the formula: Beginning Accounts Receivable + Revenue on Account - Ending Accounts Receivable = Cash Collected. So, $26,000 + $104,000 - $4,000 = $126,000.

During Year 2, Fancy Foods Incorporated Earned $104,000 of Revenue