The opening and closing balances of accounts receivable were $200 000 and $270 000 respectively.Sales on credit were $200 000.What was the amount of cash received from customers?
A) $130 000
B) $200 000
C) $270 000
D) $300 000

Question

Quizplus · Accepted Answer

The amount of cash received from customers can be calculated by adjusting the sales on credit by the change in accounts receivable. The opening balance was $200,000 and the closing balance was $270,000, indicating an increase of $70,000 in accounts receivable. Therefore, cash received is sales on credit ($200,000) minus the increase in accounts receivable ($70,000), which equals $130,000.

The Opening and Closing Balances of Accounts Receivable Were $200