The balance in accounts receivable at the beginning of 2009 was $300. During 2009, $1,600 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $100 in accounts receivable were written off during the year, the amount of cash collected from customers during 2009 was:

Question

Quizplus · Accepted Answer

The cash collected during the year can be calculated by subtracting the change in accounts receivable from the credit sales. Change in accounts receivable = Beginning balance - Ending balance + Accounts written off = $300 - $250 + $100 = $150. Therefore, cash collected from customers during 2009 = Credit sales - Change in accounts receivable = $1,600 - $150 = $1,550. Hence, the correct answer is choice C.

The Balance in Accounts Receivable at the Beginning of 2009