Newsome Corporation had accounts receivable of $110,000 at the beginning of the year and $125,000 at the end of the year.Sales for the year amounted to $575,000.Cash collections from customers are:
A)$15,000.
B)$465,000.
C)$560,000.
D)$575,000.

Question

Quizplus · Accepted Answer

The cash collections from customers can be calculated by taking the beginning accounts receivable, adding sales, and subtracting the ending accounts receivable: $110,000 + $575,000 - $125,000 = $560,000.

Newsome Corporation Had Accounts Receivable of $110,000 at the Beginning