Erie Company began the accounting period with $27,000 in Accounts Receivable. The ending balance in Accounts Receivable was $10,000. If the credit sales during the period were $44,000, what is the amount of cash received from customers?

Question

Quizplus · Accepted Answer

We can use the formula: Cash received from customers = credit sales - decrease in accounts receivable
Cash received from customers = $44,000 - ($27,000 - $10,000)
Cash received from customers = $44,000 - $17,000
Cash received from customers = $27,000
Therefore, the answer is D) $61,000.

Erie Company Began the Accounting Period with $27,000 in Accounts