Total sales for a year are $40,000,which includes cash sales of $5,000.The beginning and ending balances of accounts receivable are $10,000 and $15,000,respectively.How much cash was received from customers?
A) $30,000
B) $20,000
C) $25,000
D) $35,000

Question

Quizplus · Accepted Answer

The cash received from customers can be calculated by adding the cash sales to the net change in accounts receivable. Cash sales are $5,000. The net change in accounts receivable is the ending balance ($15,000) minus the beginning balance ($10,000), which equals $5,000. Therefore, total cash received is $5,000 (cash sales) + $30,000 (change in accounts receivable) = $35,000.

Total Sales for a Year Are $40,000,which Includes Cash Sales