The balance in accounts receivable at the beginning of 2013 was $300. During 2013, $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 2013 was:

Question

Quizplus · Accepted Answer

The formula for cash collected from customers is:

Beginning accounts receivable + Credit sales - Ending accounts receivable - Amount written off = Cash collected from customers

Plugging in the given values:

$300 (Beginning accounts receivable) + $1,600 (Credit sales) - $250 (Ending accounts receivable) - $100 (Amount written off) = $1,550

Therefore, the amount of cash collected from customers during 2013 was $1,550. The correct choice is C.

The Balance in Accounts Receivable at the Beginning of 2013