On January 1,2011,Company Z had accounts receivable of $5,000.During the year,Company Z sold $100,000 of merchandise to credit customers.At December 31,2011,Company Z had accounts receivable of $4,000.How much cash did the company collect from credit customers during the year?
A)$105,000
B)$101,000
C)$99,000
D)$95,000

Question

Quizplus · Accepted Answer

The cash collected from credit customers can be calculated by adding the beginning accounts receivable to the sales on credit and then subtracting the ending accounts receivable: $5,000 + $100,000 - $4,000 = $101,000.

On January 1,2011,Company Z Had Accounts Receivable of $5,000