If $90,000 is owed by customers at the beginning of the year, $75,000 is owed at the end and credit sales are $120,000, the cash received from customers is:
A)$120,000.
B)$80,000.
C)$125,000.
D)$135,000.

Question

Quizplus · Accepted Answer

The cash received from customers can be calculated by adding the credit sales to the beginning balance of accounts receivable, and then subtracting the ending balance of accounts receivable. 
Cash received = credit sales + beginning accounts receivable - ending accounts receivable 
Cash received = $120,000 + $90,000 - $75,000 
Cash received = $135,000

If $90,000 Is Owed by Customers at the Beginning of the Year