On January 1,2011,Company X had accounts receivable of $20,000.During the year,Company X sold $100,000 of merchandise to credit customers.At December 31,2011,Company X had accounts receivable of $50,000.How much cash did the company collect from credit customers during the year?
A)$130,000
B)$120,000
C)$100,000
D)$70,000

Question

Quizplus · Accepted Answer

The cash collected from credit customers can be calculated by adding the beginning accounts receivable to the sales on credit and then subtracting the ending accounts receivable: $20,000 + $100,000 - $50,000 = $70,000.

On January 1,2011,Company X Had Accounts Receivable of $20,000