In 2018,Hope Company incurred sales on account of $100,000.The company also has the following information: What is the amount of cash received from customers for Hope Company in 2018?
$$\begin{array} { | l | r | r | }
\hline & \mathbf { December ~31, } & \mathbf { December ~31, } \
& \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \
\hline \text { Accounts } & \$ 20,000 & \$ 50,000 \
\text { Receivable } & & \
\hline \text { Accounts } & \$ 40,000 & \$ 65,000 \
\text { Payable } & & \
\hline
\end{array}$$

Question

In 2018,Hope Company incurred sales on account of $100,000.The company also has the following information: What is the amount of cash received from customers for Hope Company in 2018?
$$\begin{array} { | l | r | r | } 
\hline & \mathbf { December ~31, } & \mathbf { December ~31, } \
& \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \
\hline \text { Accounts } & \$ 20,000 & \$ 50,000 \
\text { Receivable } & & \
\hline \text { Accounts } & \$ 40,000 & \$ 65,000 \
 \text { Payable } & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

To find the cash received from customers, we start with sales on account ($100,000) and adjust for the change in accounts receivable. The accounts receivable decreased from $50,000 at the beginning of the year to $20,000 at the end, indicating that $30,000 more was collected than was credited to sales on account. Therefore, cash received is sales on account ($100,000) plus the decrease in accounts receivable ($30,000), totaling $130,000.

In 2018,Hope Company Incurred Sales on Account of $100,000 A)$100,000