The Accounts Receivable account for Johnny's Mechanic Shop had a beginning balance of $35,000. During the month, Johnny made sales on account of $42,000. The ending balance in the Accounts Receivable account is $32,000. What are cash collections for the month?
A)$35,000
B)$42,000
C)$45,000
D)$77,000

Question

Quizplus · Accepted Answer

Cash collections can be calculated as: Beginning Balance + Sales on Account - Ending Balance = Cash Collections. So, $35,000 + $42,000 - $32,000 = $45,000.

The Accounts Receivable Account for Johnny's Mechanic Shop Had a Beginning