ZCMI, Inc. reported an increase in Accounts Receivable of $7,000 and credit sales of $435,000. Cash received from credit customers for the period were:
A)$435,000.
B)$ 7,000.
C)$428,000.
D)$421,000.

Question

Quizplus · Accepted Answer

The increase in Accounts Receivable of $7,000 is not cash received, but rather represents sales made on credit that have not yet been collected. Cash received from credit customers would be calculated by subtracting any decrease in Accounts Receivable from credit sales: $435,000 - $7,000 = $428,000. Therefore, the correct answer is (C).

ZCMI, Inc Reported an Increase in Accounts Receivable of $7,000 and and Credit