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31 January, 19:57

Sales on account are $200,000. Cash sales during the period are $50,000. Beginning accounts receivable is $20,000, and ending accounts receivable is $30,000. What is the total cash collected from customers during the period?

a. $230,000

b. $240,000

c. $250,000

d. $220,000

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Answers (1)
  1. 31 January, 20:02
    0
    Option (b) is correct.

    Explanation:

    Amount collected from debtors:

    = Sales on account + Beginning accounts receivable - Ending accounts receivable

    = $200,000 + $20,000 - $30,000

    = $190,000

    Total Cash collected = Cash sales + Amount collected from debtors

    = $50,000 + $190,000

    = $240,000

    Therefore, the total cash collected from customers during the period is $240,000.
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