Madison Company had sales of $154,000. Additional information from the balance sheet is below: $$\begin{array} { c c c }
&\text { Beginning Balance } & \text { Ending Balance } \
\text { Accounts Receivable }&22,000 & \$ 28,000 \
\text { Accounts Payable }&21,000 & 25,000
\end{array}$$ How much cash was collected from customers?
A) $148,000.
B) $150,000.
C)$154,000.
D)$160,000.

Question

Madison Company had sales of $154,000. Additional information from the balance sheet is below: $$\begin{array} { c c c } 
&\text { Beginning Balance } & \text { Ending Balance } \
 \text { Accounts Receivable }&22,000 & \$ 28,000 \
\text { Accounts Payable }&21,000 & 25,000
\end{array}$$ How much cash was collected from customers?
A) $148,000.
B) $150,000.
C)$154,000.
D)$160,000.

Quizplus · Accepted Answer

The cash collected from customers is calculated as: Sales - Increase in Accounts Receivable = $154,000 - ($28,000 - $22,000) = $148,000.

Madison Company Had Sales of $154,000 How Much Cash Was Collected from Customers? A) $148,000

Madison Company Had Sales of $154,000 How Much Cash Was Collected from Customers?
A) $148,000