Sedlacek Corporation reported sales revenue of $785,000,accounts receivable of $42,600 at the beginning of the year,and accounts receivable of $66,200 at the end of the year.Cash collections from customers during the year were:

Question

Quizplus · Accepted Answer

To find out the cash collections from customers, we need to calculate the change in accounts receivable during the year.

Change in Accounts Receivable = Ending Accounts Receivable - Beginning Accounts Receivable 
= $66,200 - $42,600 
= $23,600

Cash Collections = Sales Revenue + Decrease in Accounts Receivable 
= $785,000 + ($42,600 - $66,200) 
= $785,000 - $23,600 
= $761,400

Therefore, the best choice is C.

Sedlacek Corporation Reported Sales Revenue of $785,000,accounts Receivable of $42,600