Accounts Receivable was $1,500 at the end of November and $1,050 at the end of December.Revenue totaled $8,400 for December.How much cash was received from revenues during December?
A)$10,950
B)$8,850
C)$7,950
D)$5,950

Question

Quizplus · Accepted Answer

The decrease in Accounts Receivable means that $1,500 - $1,050 = $450 was collected from customers during December. Since revenue totaled $8,400, the amount of cash received from revenues during December was $8,400 - $450 = $7,950. Therefore, the answer is choice B.

Accounts Receivable Was $1,500 at the End of November and $1,050