Bowman Corporation's sales were $300,000, and the balance in its Accounts Receivable increased by $8,000 during the year. Bowman collected $308,000 in cash from its customers.

Question

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Bowman Corporation's sales were $300,000, and the increase in Accounts Receivable by $8,000 indicates that not all sales were collected in cash. Therefore, the cash collected should be $292,000 ($300,000 sales - $8,000 increase in Accounts Receivable), not $308,000.

Bowman Corporation's Sales Were $300,000, and the Balance in Its