Bob Company reported sales of $200,000,an increase in accounts receivable of $15,000,and a decrease in cash of $20,000.How much cash was collected from customers?
A)$185,000
B)$195,000
C)$200,000
D)$220,000

Question

Quizplus · Accepted Answer

The cash collected from customers is calculated by adjusting the sales figure for the change in accounts receivable. Since accounts receivable increased by $15,000, it means that $15,000 of the sales were not collected in cash. Therefore, cash collected = $200,000 (sales) - $15,000 (increase in accounts receivable) = $185,000.

Bob Company Reported Sales of $200,000,an Increase in Accounts Receivable