Question

Warner Furniture Center had accounts receivable of $ 26 comma 000 at the beginning of the year and $ 55 comma 000 at​ year-end. Revenue for the year totaled $ 118 comma 000. How much cash did the business collect from​ customers?

Answer 1

Answer: $89,000

Step-by-step explanation: Cash collected from customers is the is the total amount of money paid by the those customers who purchased the commodity on credit previously.

Cash collected can be calculated using following formula :-

cash collection = opening receivables + revenue - closing receivables

putting the values into above equation, we get :-

cash collection = $26,000 + $118,000 - $55,000

= $89,000