In 2020, Junction Corporation has cash receipts from customers of $270,000 and cash payments for operating expenses of $168,000. At January 1, 2020, accounts receivable were $30,000; at December 31, 2020 they were $34,400. Total service revenue is
A) $270,000.
B) $274,400.
C) $106,400.
D) $265,600.

Question

Quizplus · Accepted Answer

Total revenue is equal to cash receipts plus the increase in accounts receivable: 
$270,000 + ($34,400 - $30,000) = $274,400.

In 2020, Junction Corporation Has Cash Receipts from Customers of $270,000