Goodloe Corporation's credit sales for 2016 were $500,000,and the balance in its accounts receivable increased by $26,000 during the year.In 2016,Goodloe collected $526,000 in cash from its customers.

Question

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The balance in accounts receivable increased by $26,000, which means that Goodloe did not collect all of its credit sales for the year. Therefore, the amount collected in cash from customers ($526,000) is greater than the credit sales ($500,000), which is not possible. Thus, the statement is false.

Goodloe Corporation's Credit Sales for 2016 Were $500,000,and the Balance