Question

Sales on account are $200,000. Cash sales during the period are $50,000. Beginning accounts receivable is $20,000, and ending accounts receivable is $30,000. What is the total cash collected from customers during the period?

a. $230,000
b. $240,000
c. $250,000
d. $220,000

Answer 1

Option (b) is correct.

Step-by-step explanation:

Amount collected from debtors:

= Sales on account + Beginning accounts receivable - Ending accounts receivable

= $200,000 + $20,000 - $30,000

= $190,000

Total Cash collected = Cash sales + Amount collected from debtors

= $50,000 + $190,000

= $240,000

Therefore, the total cash collected from customers during the period is $240,000.