Voyager Products,Inc.reported sales revenue of $295,000,beginning and ending accounts receivable of $24,600 and $31,800,respectively,and beginning and ending customer deposits of $18,600 and $14,500,respectively.Cash collections from customers during the year were:
A)$306,300
B)$295,000
C)$283,700
D)$277,700

Question

Quizplus · Accepted Answer

Cash collections from customers can be calculated as:

Sales revenue + Beginning Accounts Receivable - Ending Accounts Receivable - Beginning Customer Deposits + Ending Customer Deposits

= $295,000 + $24,600 - $31,800 - $18,600 + $14,500
= $283,700

Therefore, the best choice is C.