Question

Sales on account (all are collectible) amounted to $560,000 during 2019. Accounts receivable were $112,000 on January 1, 2019 and $98,000 on December 31, 2019. How much cash was collected from customers during the year ended December 31, 2019?

a) $462,000.
b) $574,000.
c) $546,000.
d) $560,000.

Answer 1

The answer is: B) $574,000

Step-by-step explanation:

To determine how much cash was collected during 2019, we can use the following formula:

cash collected = initial accounts receivables + total sales on account - ending accounts receivables

cash collected during 2019 = $112,000 + $560,000 - $98,000 = $574,000