Phillips Co.reported total credit sales of $460,000 for Year 2.Its accounts receivable totaled $70,000 and $100,000 at the beginning and end of the year,respectively.What was the cash collected from customers during Year 2?
A)$530,000
B)$460,000
C)$490,000
D)$430,000

Question

Quizplus · Accepted Answer

Ending balance of accounts receivable of $100,000 = Beginning balance of accounts receivable of $70,000 + Increase due to credit sales of $460,000 - Decrease due to cash collected from customers (the unknown)
Cash collected from customers = $70,000 + $460,000 - $100,000 = $430,000