Land Reclamation Industries began the year with $46,700 in Accounts Receivable and ended the year with $31,900 in Accounts Receivable. If sales for the year were $687,000, the cash collected from customers during the year amounted to:
A) $701,800
B) $733,700
C) $655,100
D) $672,200

Question

Quizplus · Accepted Answer

The cash collected from customers is calculated by adding the beginning Accounts Receivable to the sales for the year and then subtracting the ending Accounts Receivable. So, $46,700 + $687,000 - $31,900 = $701,800.

Land Reclamation Industries Began the Year with $46,700 in Accounts