If the opening balance on accounts receivable was £35,000 with a closing balance of £15,000 and the income statement reported revenue of £180,000,what is the cash collected from customers?
A) £195,000
B) £200,000
C) £20,000
D) £145,000

Question

Quizplus · Accepted Answer

The cash collected from customers can be calculated by adding the decrease in accounts receivable to the revenue reported in the income statement. 
Decrease in accounts receivable = Opening balance - Closing balance 
= £35,000 - £15,000 
= £20,000 
Cash collected from customers = Revenue + Decrease in accounts receivable 
= £180,000 + £20,000 
= £200,000

If the Opening Balance on Accounts Receivable Was £35,000 with a Closing