During its first year of operations,Widgets Incorporated reported sales revenue of $386,000 but collected only $303,000 from customers.The amount to be reported as accounts receivable at the end of the year is:

Question

Quizplus · Accepted Answer

The difference between sales revenue and cash collected is $386,000 - $303,000 = $83,000. This means that $83,000 worth of sales have not been paid for yet, which is the amount of accounts receivable at the end of the year. Therefore, the correct answer is option D.

During Its First Year of Operations,Widgets Incorporated Reported Sales Revenue