Kyoto Industries began the year with $81,500 in Accounts Receivable and ended the year with $79,200 in Accounts Receivable. Sales for the year were $2,100,000. The cash collected from customers during the year amounted to:
A)$2,097,700.
B)$2,181,500.
C)$2,102,300.
D)$2,179,200.

Question

Quizplus · Accepted Answer

To find out cash collected from customers, we need to adjust the change in accounts receivable from the sales amount.

Cash collected from customers = Sales - Decrease in Accounts Receivable 
Cash collected from customers = $2,100,000 - ($81,500 - $79,200) 
Cash collected from customers = $2,100,000 - $2,300 
Cash collected from customers = $2,097,700

Therefore, the correct answer is C.

Kyoto Industries Began the Year with $81,500 in Accounts Receivable