In 2020 Phosphate Aurora Inc. reported an increase in Accounts Receivable of $7,500 and cash collections on account of $430,000. Sales on account for the period were:
A) $437,500
B) $422,500
C) $7,500
D) $430,000

Question

Quizplus · Accepted Answer

The increase in accounts receivable of $7,500 represents sales on account that have not yet been collected. Therefore, sales on account for the period can be calculated as cash collections on account ($430,000) plus the increase in accounts receivable ($7,500), which equals $437,500. Therefore, the correct choice is A, $437,500.