ABC Company began the month with a balance of $70,000 in Accounts Receivable. An analysis of the account determined that sales on account for the month totaled $110,000. At the end of the month, the balance in Accounts Receivable was $$85,000. From this information, it can be determined that the ABC Company had collections from customers on account of:
A) $15,000.
B) $45,000.
C) $95,000.
D) $115,000.

Question

Quizplus · Accepted Answer

The collections from customers on account can be calculated as: Beginning balance ($70,000) + Sales on account ($110,000) - Ending balance ($85,000) = Collections ($95,000).

ABC Company Began the Month with a Balance of $70,000 $$85,000 from This Information, It Can Be Determined That the in Accounts