If $20 000 is owed by customers at the beginning of the year,$15 000 is owed at the end and credit sales are $100 000,the cash received from customers for the year is:
A)$120 000
B)$115 000
C)$100 000
D)$105 000

Question

Quizplus · Accepted Answer

To find the cash received from customers, we need to account for the $20 000 that was owed at the beginning of the year and the credit sales of $100 000 made during the year. This gives us a total of $120 000 that could potentially be received. However, we also know that only $15 000 is owed at the end of the year, which means that $105 000 of the credit sales were actually paid for during the year. Therefore, the cash received from customers is $105 000.

If $20 000 Is Owed by Customers at the Beginning