Question

The balance in accounts receivable at the beginning of 2016 was $600. During 2016, $3,200 of credit sales were recorded. If the ending balance in accounts receivable was $500 and $200 in accounts receivable were written off during the year, the amount of cash collected from customers was

a) $3,100
b) $3,200
c) $3,300
d) $3,800

Answer 1

The amount of cash collected from customers was $3,100.

Step-by-step explanation:

To determine the amount of cash collected from customers, we need to calculate the change in accounts receivable. The beginning balance was $600, credit sales were $3,200, and $200 was written off. So, the change in accounts receivable is ($600 + $3,200 - $200) - $500 = $3,100. Therefore, the correct answer is option a) $3,100.