Phillips Company reported total credit sales of $244,200 for Year 2. Its accounts receivable totaled $39,500 and $57,700 at the beginning and end of the year, respectively. What was the cash collected from customers during Year 2?

Question

Quizplus · Accepted Answer

Cash collected from customers = Total credit sales + Decrease in accounts receivable
= $244,200 + ($39,500 - $57,700)
= $244,200 - $18,200
= $226,000

Therefore, the answer is D) $226,000.

Phillips Company Reported Total Credit Sales of $244,200 for Year