Ervin Company began the accounting period with $64,000 in accounts receivable.The ending balance in accounts receivable was $40,000.If the credit sales during the period were $588,000,what is the amount of cash received from customers?
A)$564,000
B)$612,000
C)$24,000
D)$548,000

Question

Quizplus · Accepted Answer

Ending balance of accounts receivable of $40,000 = Beginning balance of accounts receivable of $64,000 + Increase due to credit sales of $588,000 - Decrease due to cash collected from customers (the unknown)
Cash collected from customers = $64,000 + $588,000 - $40,000 = $612,000

Ervin Company Began the Accounting Period with $64,000 in Accounts