Joyce Ltd had cash sales of $80 000 in January. Accounts Receivable decreased by $10 000 during January and there were no credit sales and no bad debts. How much cash was collected from customers in January?
A) $60 000
B) $70 000
C) $80 000
D) $90 000

Question

Quizplus · Accepted Answer

The cash collected from customers in January is the sum of cash sales ($80,000) and the decrease in accounts receivable ($10,000), totaling $90,000. The decrease in accounts receivable indicates that customers paid off $10,000 of their previous credit purchases in cash.

Joyce Ltd Had Cash Sales of $80 000 in January