Furniture Center had accounts receivable of $ 25 comma 000 at the beginning of the year and $ 56 comma 000 at year-end. Revenue for the year totaled $ 119 comma 000. How much cash did the business collect from customers

Question

Zane Frederick

Business

13 September, 05:13

Furniture Center had accounts receivable of $ 25 comma 000 at the beginning of the year and $ 56 comma 000 at year-end. Revenue for the year totaled $ 119 comma 000. How much cash did the business collect from customers

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Answers (1)

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Lyla · Answer 1

They collected $88,000

Explanation:

We have an initial balance of accounts receivable of $ 25,000. To this balance, we must add the revenue of the year a total of $ 119,000. By making this sum we get the result of $ 114,000, this would be the total of our accounts receivable totalized.

Subsequently, to this value we subtract the final balance of accounts receivable that was $ 56,000, to obtain a result of $ 88,000. In other words, $ 88,000 would be the amount collected from accounts receivable during the year.