Erie Company reports the following comparative balance sheets and income statement information for the current year.
Comparative Balance Sheets
12/31/2015 12/31/2016

-What was the cash received from customers during the year?
A)$296,000
B)$264,000
C)$280,000
D)$248,000

Question

Erie Company reports the following comparative balance sheets and income statement information for the current year.
Comparative Balance Sheets
12/31/2015 12/31/2016
  
-What was the cash received from customers during the year?
A)$296,000 
B)$264,000 
C)$280,000 
D)$248,000

Quizplus · Accepted Answer

Ending balance of accounts receivable of $16,000 = Beginning balance of accounts receivable of $32,000 + Increase due to credit sales of $280,000 -Decrease due to cash collected from customers (the unknown)
Cash collected from customers = $32,000 + $280,000 - $16,000 = $296,000

Erie Company Reports the Following Comparative Balance Sheets and Income