A company reported annual sales revenue of $2,772,000. During the year, accounts receivable decreased from a $102,000 beginning balance to a $69,600 ending balance.
How much cash was received from customers for the year?

Question

Quizplus · Accepted Answer

The cash received from customers can be calculated by adding the decrease in accounts receivable to the sales revenue. The decrease in accounts receivable is $102,000 - $69,600 = $32,400. Therefore, the cash received from customers is $2,772,000 + $32,400 = $2,804,400.

A Company Reported Annual Sales Revenue of $2,772,000