Railway Corporation provides the following information that relates to the period ended 30 June 2015:
$$\begin{array} { | l | r |}
\hline & \$ 0 \
\hline \text { Sales for the year } & 400 \
\hline \text { Discounts provided to customers for early payment } & 7 \
\hline \text { Bad debts expense } & 10 \
\hline \text { Opening balance of accounts receivable } & 150 \
\hline \text { Closing balance of accounts receivable } & 170\
\hline
\end{array}$$
What amount of cash was received from customers during the year?
A) $383 000
B) $363 000
C) $403 000
D) $397 000

Question

Railway Corporation provides the following information that relates to the period ended 30 June 2015:
$$\begin{array} { | l | r |} 
\hline & \$ 0 \
\hline \text { Sales for the year } & 400 \
\hline \text { Discounts provided to customers for early payment } & 7 \
\hline \text { Bad debts expense } & 10 \
\hline \text { Opening balance of accounts receivable } & 150 \
\hline \text { Closing balance of accounts receivable } & 170\
\hline
\end{array}$$
What amount of cash was received from customers during the year?
A) $383 000
B) $363 000
C) $403 000
D) $397 000

Quizplus · Accepted Answer

To calculate the cash received from customers, start with sales for the year, subtract discounts, add the opening balance of accounts receivable, subtract the closing balance of accounts receivable, and subtract bad debts expense. This gives: $400,000 - $7,000 + $150,000 - $170,000 - $10,000 = $363,000.

Railway Corporation Provides the Following Information That Relates to the Period