Pingry Company's Accounts Receivable balance increased by $14,000 during the year. The company's income statement reports sales revenue of $437,500, all on account. How much cash was collected from customers during the year?

Question

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The cash collected from customers is calculated by subtracting the increase in accounts receivable from the sales revenue: $437,500 - $14,000 = $423,500.

Pingry Company's Accounts Receivable Balance Increased by $14,000 During the Year