Determine the cash received from customers on account during July, based on the following data.
A) $37 900
B) $40 000
C) $42 100
D) None of the above

Question

Determine the cash received from customers on account during July, based on the following data. 
A) $37 900 
B) $40 000 
C) $42 100 
D) None of the above

Quizplus · Accepted Answer

The cash received from customers on account can be determined by adding the increases in Accounts Receivable and subtracting the decrease in Accounts Receivable, which is as follows:

Beginning balance in Accounts Receivable: $20,000
Increases in Accounts Receivable during July: $30,000
Decrease in Accounts Receivable during July: $8,900

Therefore, cash received from customers on account during July = Beginning balance in Accounts Receivable + Increases in Accounts Receivable - Decrease in Accounts Receivable = $20,000 + $30,000 - $8,900 = $42,100. Hence, the correct option is C.

Determine the Cash Received from Customers on Account During July