Question

Phillips Co. reported total credit sales of $241,000 for Year 2. Its accounts receivable totaled $38,500 and $56,000 at the beginning and end of the year, respectively. What was the cash collected from customers during Year 2?

Answer 1

Answer: $‭223,500‬

Step-by-step explanation:

Cash collected from customers = Receivables opening balance + Total credit sales - Receivables closing balance

= 38,500 + 241,000 - 56,000

= $‭223,500‬