On January 1,Year 2,the balance of Jacobs Corporation's Accounts Receivable was $40,000.Sales on account for Year 2 amounted to $320,000 and the ending balance of Accounts Receivable was $64,000.What is the amount of cash collected from customers?

Question

Quizplus · Accepted Answer

Ending balance of accounts receivable of $64,000 = Beginning balance of accounts receivable of $40,000 + Increase due to credit sales of $320,000 - Decrease due to cash collected from customers (the unknown)
Cash collected from customers = $40,000 + $320,000 - $64,000 = $296,000

On January 1,Year 2,the Balance of Jacobs Corporation's Accounts Receivable