Sales on credit for the year totalled $125 000. The following information is also available: Bad debts written off during the year: $10 000
How much cash was collected from customers during the year?
A) $70 000
B) $130 000
C) $110 000
D) $155 000

Question

Sales on credit for the year totalled $125 000. The following information is also available:  Bad debts written off during the year: $10 000
How much cash was collected from customers during the year?
A) $70 000 
B) $130 000 
C) $110 000 
D) $155 000

Quizplus · Accepted Answer

The cash collected from customers during the year would be the total sales on credit ($125,000) minus the bad debts written off ($10,000), which equals $115,000. Option C is the closest value to this calculation.

Sales on Credit for the Year Totalled $125 000