SDB reported sales of $300,000, write-offs of uncollectible accounts of $10,000 against the allowance, and a decrease in net accounts receivable of $40,000 during 2013. What would be SDB's cash collected from customers during 2013?
A) $300,000
B) $330,000
C) $340,000
D) $350,000

Question

Quizplus · Accepted Answer

Cash collected from customers is determined by adding the decrease in accounts receivable to sales and subtracting write-offs of uncollectible accounts. 
Cash collected from customers = Sales - Write-offs + Decrease in accounts receivable 
Cash collected from customers = $300,000 - $10,000 + $40,000 
Cash collected from customers = $330,000 
Therefore, the best choice is C.

SDB Reported Sales of $300,000, Write-Offs of Uncollectible Accounts of $10,000