During its first year of business,Gnu,Inc.sold $200,000 of merchandise to customers on account.At the end of the year Gnu,Inc.had accounts receivable of $40,000.How much cash did the company collect from credit customers during the year?
A)$200,000
B)$240,000
C)$160,000
D)$40,000

Question

Quizplus · Accepted Answer

The company collected $160,000 from credit customers. This is calculated by subtracting the ending accounts receivable ($40,000) from the total sales on account ($200,000), indicating the amount of cash collected.

During Its First Year of Business,Gnu,Inc