If $80,000 is owed by customers at the beginning of the year,$75,000 is owed at the end and credit sales are $120,000,the cash received from customers is:

Question

Quizplus · Accepted Answer

We need to calculate the cash received from customers, which means we have to subtract the decrease in accounts receivable (from beginning to end) from the credit sales. 
Decrease in accounts receivable = $80,000 - $75,000 = $5,000 
Cash received from customers = Credit sales - Decrease in accounts receivable 
Cash received from customers = $120,000 - $5,000 
Cash received from customers = $115,000 
Therefore, the correct answer is C.

If $80,000 Is Owed by Customers at the Beginning of the Year,$75,000