Question

Ales revenue is $360,000. accounts receivable increased by $8,000. cash received from customers is: multiple choice

O $368,000.
O indeterminable from the information provided.
O $352,000.
O $360,000.

Answer 1

The cash received from customers is $368,000. To calculate this, we subtract the increase in accounts receivable from the sales revenue and then add the increase in accounts receivable back to the adjusted sales revenue. Considering as option number a, b, c and d, option number a is correct.

Step-by-step explanation:

The cash received from customers is $368,000.

To calculate this, we need to consider the change in accounts receivable. Since accounts receivable increased by $8,000, that means $8,000 worth of sales have not been collected as cash yet. Therefore, we subtract $8,000 from the total sales revenue of $360,000 to get $352,000.

However, we still need to account for the cash received from customers for the sales that were collected. So, we add the increase in accounts receivable ($8,000) back to the adjusted sales revenue ($352,000) to get the cash received from customers, which is $368,000.