OPS Ltd provided the following information for the year ended 30 June 2014.
Revenue $240 000
Accounts receivable 1 July 2013 30 000
Accounts receivable 30 June 2014 20 000
Bad debts written off during the year* 6 000
* Direct method debit bad debts expense $6 000; credit accounts receivable $6 000).
Cash receipts from customers for the year ending 30 June 2014 were?

Question

Quizplus · Accepted Answer

The cash receipts from customers for the year ending 30 June 2014 can be calculated as follows:
Accounts receivable at 1 July 2013: $30,000
Add: Revenue for the year ended 30 June 2014: $240,000
Less: Bad debts written off during the year: $6,000
Equals: Accounts receivable at 30 June 2014: $20,000
Therefore, the cash receipts from customers for the year ending 30 June 2014 are:
Accounts receivable at 1 July 2013: $30,000
Plus: Revenue for the year ended 30 June 2014: $240,000
Less: Accounts receivable at 30 June 2014: $20,000
Plus: Bad debts written off during the year: $6,000
Equals: $256,000. 
Therefore, the correct answer is D.

OPS Ltd Provided the Following Information for the Year Ended