Outlaw, Inc. began the year with $279,000 in Accounts Receivable and ended the year with $232,700 in Accounts Receivable. Sales for the year were $3,870,000. The cash collected from customers during the year amounted to:
A) $4,149,000.
B) $4,102,700.
C) $3,916,300.
D) $3,823,700.

Question

Quizplus · Accepted Answer

The cash collected from customers is calculated by adding the beginning Accounts Receivable to the sales and then subtracting the ending Accounts Receivable: $279,000 + $3,870,000 - $232,700 = $3,916,300.