The balance in the Accounts Receivable account decreased from $18,000 at the beginning of the month to $15,000 at the end of the month.Sales on account during the month totaled $130,000.No accounts receivable were written off as uncollectible during the month.Cash collections of accounts receivable during the month totaled:
A)$127,000.
B)$130,000.
C)$133,000.
D)$145,000.

Question

Quizplus · Accepted Answer

The decrease in Accounts Receivable ($18,000 - $15,000 = $3,000) indicates that cash collections exceeded sales on account. Therefore, cash collections were $130,000 (sales) + $3,000 (decrease) = $133,000.

The Balance in the Accounts Receivable Account Decreased from $18,000