PhillipsCompany reported total credit sales of $460,000 for Year 2. Its accounts receivable totaled $70,000 and $100,000 at the beginning and end of the year, respectively. What was the cash collected from customers during Year 2?

Question

Quizplus · Accepted Answer

To find the cash collected from customers, use the formula: Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable = Cash Collected. So, $70,000 + $460,000 - $100,000 = $430,000.

PhillipsCompany Reported Total Credit Sales of $460,000 for Year 2