Rader Company had credit sales of $750,000. The beginning accounts receivable balance was $40,000 and the ending accounts receivable balance was $140,000. What were the cash collections from customers during the period?
A) $850,000
B) $750,000
C) $650,000
D) $790,000

Question

Quizplus · Accepted Answer

The cash collections can be calculated using the formula: Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable = Cash Collections. Thus, $40,000 + $750,000 - $140,000 = $650,000.

Rader Company Had Credit Sales of $750,000