Sales totaled $385,000,net accounts receivable had a beginning and ending balance of $39,000 and $45,500,respectively.Cash collections from customers were:

Question

Quizplus · Accepted Answer

The cash collections from customers can be calculated using the formula:
Cash collections = Sales - Increase in accounts receivable
Increase in accounts receivable = Ending accounts receivable - Beginning accounts receivable
= $45,500 - $39,000
= $6,500

Therefore, Cash collections = $385,000 - $6,500
= $378,500

Hence, the best choice is C.

Sales Totaled $385,000,net Accounts Receivable Had a Beginning and Ending