Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account.Revenues for the period amounted to $38,000.Under the direct method,Gaulle will report cash collected from customers of
A)$44,000.
B)$35,000.
C)$41,000.
D)$47,000.

Question

Quizplus · Accepted Answer

Under the direct method, cash collected from customers is calculated as follows: Beginning Accounts Receivable + Revenues - Ending Accounts Receivable = Cash Collected. Therefore, $6,000 + $38,000 - $9,000 = $35,000.

Gaulle Company Began the Year with a Balance of $6,000