Which of the following is the correct formula for calculating cash collections from customers?
A) sales for the period plus accounts receivable at the beginning of the period
B) sales for the period plus accounts receivable at the beginning of the period minus accounts receivable at the end of the period
C) sales for the period plus accounts receivable at the end of the period
D) sales for the period plus accounts receivable at the end of the period minus accounts receivable at the beginning of the period

Question

Quizplus · Accepted Answer

Cash collections from customers are calculated by taking sales for the period and adjusting for changes in accounts receivable, specifically adding the beginning accounts receivable and subtracting the ending accounts receivable.

Which of the Following Is the Correct Formula for Calculating